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Empower, a Dubai government–owned district cooling company, is planning to sell 1 billion shares (10% stake), and subscriptions will open on October 31.
The share price range is yet to be decided. However, its offer price range will be announced on October 31, ahead of the opening of the subscription process.
The Empower subscription period closes on November 7. The minimum subscription amount for the retail investor tranche is Dhs 50,000 ($13,614) and those deemed professional investors can start from Dhs 5 million, Empower said.
Dubai's utility giant DEWA holds 70% in Empower.
Empower is the fourth state-linked firm to seek a listing this year, to attract investor interest in the local stock exchange and boost the size of its capital markets.
Saeed Mohammed Ahmad Al Tayer, Chairman of Empower, said: "Dubai aims to increase the total volume of its stock markets to AED 3 trillion. At the heart of Empower’s strategy is supporting Dubai’s energy transition; by providing access to sustainable cooling solutions and increased energy efficiency, better water efficiency, and encouraging responsible energy consumption."
Dividend plans
Following the offering, Empower intends to pay dividends in April and October of each year.
It expects to pay a minimum dividend amount of AED 850 million per annum, in the first two fiscal years following the Offering (April 2023 to October 2024).
Empower will distribute its first dividend payment of a minimum of AED 425 million after the offering, for the second half of 2022, by April 2023. After the October 2024 distribution, it expects to pay a sustainable dividend in line with the growth of the business.
While Emirates NBD is the lead receiving bank, the joint book runners for the IPO are: Citigroup Global Markets Limited, Emirates NBD Capital PSC and Merrill Lynch International.
(Reporting by Seban Scaria; editing by Daniel Luiz)
