Dubai Said to Consider Increasing Size of IPO Facilitation for Active Demand | Tech Rasta


(Bloomberg) — Dubai increased the size of Emirates Central Cooling Systems Corp.’s initial public offering. by 50% after attracting strong investor demand, in line with the trend seen in the Middle East as the best place to list globally this year.

Shareholders Dubai Electricity and Water Authority and Emirates Electricity Investments will now sell 1.5 billion shares — a 15% stake — in the IPO, Empower said in a statement on Tuesday. The list will now add 2 billion dirhams ($543 million).

Selling shareholders can still decide to adjust the size of the offering before the end of the subscription period, Empower said.

An earlier plan to sell 10% of the company would have made the deal one of the smallest offerings in Dubai this year. Demand for the IPO had outstripped the offer size hours after the books opened on Monday.

The deal is part of Dubai’s privatization drive to boost liquidity and secure a series of share sales in Abu Dhabi and Saudi Arabia. The city’s three IPOs this year have collectively raised about $7.6 billion and the government increased the size of two of these listings — DEWA and Salik — after receiving strong demand.

Empower will announce the final price on November 9 and start trading on November 15. UAE Strategic Investment Fund, Shamal Holding and Abu Dhabi Pension Fund are the primary investors with a total commitment of up to 335 million dirhams.

Citigroup Inc., Emirates NBD Capital, Merrill Lynch International and EFG-Hermes are managing the IPO. Moelis & Co. is an independent financial advisor to Empower.

(Update and official announcement)

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