Markets Dubai’s Empower shareholders mull raising IPO stake to 20% By Reuters November 3, 2022 WAM Empower could raise up to $724.28m in the public share sale if it sells a 20% stake based on an indicative price range given on Monday Shareholders of Dubai’s Emirates Central Cooling Systems Corporation (Empower) are considering increasing the size of the stake in the company being offered in an initial public offering to 20 percent, two sources said on Wednesday. They increased it to 15 percent from 10 percent on Tuesday, citing strong demand. The Gulf if experiencing an IPO boom as the governments of Saudi Arabia, Abu Dhabi and Dubai push state-led listing programmes, riding high on oil prices and a comparative dearth of such offerings in other markets. No decision regarding the Dubai-owned cooling firm has yet been made, the sources familiar with the matter said. One said increasing the stake was likely but would depend on the market’s reaction to an expected US Federal Reserve rate hike later on Wednesday. The second source said the deal has seen strong demand from inside the region and elsewhere. Empower did not immediately respond to a request for comment. If Empower sells 20 percent, it could raise up to AED2.66 billion ($724.28 million) in the public share-sale, based on an indicative price range given on Monday. The final price will be set on November 9. The second source said the IPO would likely price at the top end of the AED1.31 to AED1.33 range, given the strong demand, but no final decision had been made. Empower is the fourth state-linked entity to seek a listing in Dubai this year in a programme aimed at boosting investor interest in the domestic stock exchange.
