Dubai aims to raise up to Dh1.33 billion ($362 million) from the sale of a 10 per cent stake in Emirates Central Cooling Systems Corporation, better known as Empower, as it looks to boost the size of its capital markets.
Empower, the emirate's district cooling provider, set the price range for its initial public offering between Dh1.31 and Dh1.33 a share, implying a market capitalisation of between Dh13.1bn and Dh13.3bn at the time of listing, it said on Monday.
The Dubai Electricity and Water Authority and Emirates Power will together offer one billion shares in Empower, reserving the right to amend the size of the offering at any time before the end of the subscription period, the company said.
The subscription period began on October 31 and is expected to close on November 7 for UAE retail investors and on November 8 for qualified investors.
The final offer price is expected on November 9, with Empower shares expected to begin trading on the Dubai Financial Market on November 15.
The UAE Strategic Investment Fund, Shamal Holding and the Abu Dhabi Pension Fund are cornerstone investors in the IPO, with a total commitment of up to Dh335m, Empower said.
Empower has received "strong interest" from investors since announcing its intention to float on the DFM, its chief executive Ahmad bin Shafar said.
"Amid Dubai’s expansion plans, a robust growth in residential real estate supply and a booming hotel capacity, we believe Empower presents a unique and attractive investment proposition for all investors," he said.
Based on the minimum dividend amount of Dh850m that will be paid in 2023, or Dh0.085 per share, the offer price range implies a dividend yield ranging from 6.4 per cent to 6.5 per cent, Empower said.
Empower's IPO is part of Dubai's plans that were announced last November to list 10 state-owned companies and increase the size of its financial market to about Dh3 trillion, as well as set up a Dh2bn market maker fund to encourage the listing of more private companies from sectors such as energy, logistics and retail.
Empower was established by royal decree as a joint venture in 2003 to provide energy through its various plants to the emirate's property sector.
The company has become the world’s largest district cooling services provider. It will have 81 district cooling plants by the end of 2022 and a network that is more than 350 kilometres long, according to its website.
Empower accrued Dh1.15bn in revenue in the first half of 2022 and its earnings before interest, taxes, depreciation and amortisation stood at Dh600m during the six-month period.
At the end of 2021, Empower had a connected and contracted capacity of about 1.64 million refrigeration tonnes and 1.5 million refrigeration tonnes, respectively.
The company serves more than 140,000 corporate and individual consumers in 1,413 buildings, retaining more than a 76 per cent market share in Dubai’s district cooling sector, according to its website.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
THE SIXTH SENSE
Starring: Bruce Willis, Toni Collette, Hayley Joel Osment
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Coming soon
Torno Subito by Massimo Bottura
When the W Dubai – The Palm hotel opens at the end of this year, one of the highlights will be Massimo Bottura’s new restaurant, Torno Subito, which promises “to take guests on a journey back to 1960s Italy”. It is the three Michelinstarred chef’s first venture in Dubai and should be every bit as ambitious as you would expect from the man whose restaurant in Italy, Osteria Francescana, was crowned number one in this year’s list of the World’s 50 Best Restaurants.
Akira Back Dubai
Another exciting opening at the W Dubai – The Palm hotel is South Korean chef Akira Back’s new restaurant, which will continue to showcase some of the finest Asian food in the world. Back, whose Seoul restaurant, Dosa, won a Michelin star last year, describes his menu as, “an innovative Japanese cuisine prepared with a Korean accent”.
Dinner by Heston Blumenthal
The highly experimental chef, whose dishes are as much about spectacle as taste, opens his first restaurant in Dubai next year. Housed at The Royal Atlantis Resort & Residences, Dinner by Heston Blumenthal will feature contemporary twists on recipes that date back to the 1300s, including goats’ milk cheesecake. Always remember with a Blumenthal dish: nothing is quite as it seems.
Tickets
Tickets start at Dh100 for adults, while children can enter free on the opening day. For more information, visit www.mubadalawtc.com.
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
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Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
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As You Were
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(Warner Bros)
