PHOTO
Shares of Dubai’s Emirates Central Cooling Systems Corporation (Empower) rallied on its debut on the Dubai Financial Market (DFM).
The district cooling provider, which raised AED 2.6 billion ($724 million) in its recent initial public offering (IPO), was trading at AED1.45 ($0.39) on Tuesday morning, valuing the company at AED14.5 billion.
The company, backed by the Dubai Electricity and Water Authority (DEWA) and Emirates Power Investment, had increased the offer price for the IPO to 20%, following strong demand and oversubscription from investors.
A total of 2 billion shares at AED1.33 per share were sold.
Empower is the latest state-backed entity to list on the local bourse, as Dubai seeks to boost the liquidity in its capital market.
DEWA owns 70% of the company’s shares, while Emirates Power, which is a wholly owned subsidiary of Dubai Holding, owns the remaining 30%.
With a connected capacity of approximately 1.4 million refrigeration tonnes, the company serves more than 110,000 customers in over 1,400 buildings.
(Reporting by Cleofe Maceda; editing by Daniel Luiz)
