After receiving a lot of interest from investors, Dubai expanded the amount of Emirates Central Cooling Systems Corp.’s initial public offering a second time this week.
Shareholders Dubai Electricity & Water Authority and Emirates Power Investment will now sell 2 billion shares – a 20 percent stake – in the IPO, according to terms of the deal obtained by Bloomberg News. The listing will now raise as much as Dh2.66 billion ($724 million).
The initial plan to sell 10 percent of the company would have made the deal one of the smallest offerings in Dubai this year. Demand for the IPO had exceeded the deal size hours after books opened on Monday, and the selling shareholders increased the deal size to 15 percent a day later.
The deal is part of Dubai’s privatization drive to increase liquidity and catch up with a flurry of share sales in Abu Dhabi and Saudi Arabia. The city’s three IPOs this year have raised about $7.6 billion combined and the government increased the size of two of these listings – DEWA and Salik – after drawing significant demand.
Empower will announce final pricing on November 9 and make its trading debut on November 15. The UAE Strategic Investment Fund, Shamal Holding, and Abu Dhabi Pension Fund are cornerstone investors with a total commitment of up to Dh335 million.
Management of the IPO is provided by Citigroup Inc., Emirates NBD Capital, Merrill Lynch International, and EFG-Hermes. Empower’s unbiased financial advisor is Moelis & Co.
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