Dubai seeks to raise $362m through IPO of district cooling firm

Dubai is seeking to raise $362 million by selling a 10% stake in Emirates Central Cooling Systems Corp., the city’s fourth privatization this year as part of efforts to increase trading volumes on its exchange.

The district cooling company, known as Empower, has set its IPO price range at Dhs1.31 ($0.36) to Dhs1.33 per share, according to an advertisement in Gulf News. Dubai Electricity & Water Authority and Emirates Power Investment are offering 1 billion shares in the IPO.

Empower will begin taking orders from investors for the IPO starting Monday, with the final price slated for Nov. 9. The company plans to debut on the Dubai Stock Exchange on November 15.

Empower’s IPO is part of the government’s privatization drive to boost liquidity and catch a wave of share sales. Dubai’s three listings this year, including Dubai Electricity’s, raised about $7.6 billion combined.

Empower, established almost two decades ago, is 70% owned by Dubai Electricity. The company plans to pay a minimum annual dividend of Dhs 850 million per year for two years after the IPO.

Citigroup, Emirates NBD Capital, Merrill Lynch International and EFG-Hermes are handling the IPO.

Moelis & Co. is Empower’s independent financial advisor.

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