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Emirates Central Cooling Systems Corporation (Empower) has raised the number of shares in the retail tranche of its initial public offering (IPO), citing strong demand and oversubscription from investors.
Ordinary shares for retail investors in the first tranche have been raised to 300 million, up from 100 million earlier. The retail tranche will now be between AED393 million and AED399 million ($107 million and $109 million), representing 15% of the total deal size.
The total size of the stake being offered remains unchanged at 2 billion ordinary shares, implying a deal size of 20% of Empower’s existing share capital, the district cooling services provider said in a statement on Tuesday.
However, the shares offered to qualified investors have been reduced from 1.9 billion to 1.7 billion ordinary shares.
The Dubai Electricity and Water Authority (DEWA) and Emirates Power will continue to own 56% and 24%, respectively, of Empower’s existing share capital following the offering.
Empower set the price range for the offering at AED1.31 to AED1.33 per share.
The IPO’s subscription period, which started on October 31, remained unchanged. Empower is set to begin trading on the Dubai Financial Market (DFM) on November 15.
Last November 4, it was announced that the offer size for the IPO will increase to 20%.
(Reporting by Cleofe Maceda; editing by Seban Scaria)
