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Dubai government–backed district cooling company Empower on Tuesday increased the size of its IPO by 50% and will now sell a 15%--instead of the 10% announced earlier--of existing share capital following strong investor demand.
The new offer size will be 1.5 billion ordinary shares compared with the 1 billion announced earlier, with Empower now potentially raising $540 million from the offering.
Accordingly, the second tranche-- for qualified investors-- will increase in size from 900 million ordinary shares to 1.4 billion ordinary shares. The retail tranche will remain unchanged as will the subscription period.
Empower shareholders Dubai Electricity and Water Authority and Emirates Power Investment, who are selling the stake, will continue to own 59.5% and 25.5% of Empower’s share capital respectively following the revision of the offering size. Empower said they could still decide to amend the size of the offering before the end of the subscription period.
On Monday, Empower set the price range at between 1.31 and 1.33 dirhams ($0.35 and $0.36) per share.
UAE Strategic Investment Fund, Shamal Holding and Abu Dhabi Pension Fund are the cornerstone investors in the IPO with a total commitment of up to AED335 million.
(Reporting by Brinda Darasha; editing by Daniel Luiz)
