Emirates Central Cooling Systems Corporation PJSC has announced its intention to float 10% of the company on the Dubai Financial Market through an IPO.

Known under its trading name of Empower, it is the world's biggest district cooling services provider. Established in 2003, it is is backed by Dubai Electricity and Water Authority (DEWA), which owns 70% of the shares, with the remaining 30% owned by Emirates Power Investment LLC (Emirates Power - itself an indirect wholly owned subsidiary of Dubai Holding LLC). 

In its IPO announcement of 24 October, Empower said its intention was to float 10% "of its total issued share capital". According to the IPO timeline, the price range announcement is expected by 31 October, with the close of the first tranche targeting retail investors by 7 November. The close of the institutional investor tranche is expected by 8 November.

According to the prospectus details some 90% of the shares being put up for sale are reserved for professional investors, which will be offered through the second tranche (https://www.empower.ae/ipo/uploads/EN/Prospectus.pdf )

Ahmad Bin Shafar, chief executive officer, said in a statement: "Empower's proposed Initial Public Offering marks another landmark milestone, not only for Dubai's growth story, but also for the country's wider energy transition."

"By deploying next generation technology, Empower has continued to introduce innovative efficiency-driven measures to consistently improve electricity and water efficiency, thus playing an important role in delivering sustainable cooling solutions that are efficient and cost-effective to meet growing demand, as well as utilizing 50% less electricity compared to traditional cooling. With Dubai's growing commercial and residential real estate supply as well as population, district cooling is playing a vital role curbing power consumption related to air conditioning which is aligned with Dubai's Vision "Towards a Carbon Neutral City."

"At the heart of our strategy is our ESG policy, which outlines our ambitions to align our strategies and operations with some of the United Nations' Sustainable Development Goals, namely affordable and clean energy, sustainable cities and communities and climate action."

"These factors, coupled with Empower's state-of-the-art facilities and experienced management team, provide us with renewed confidence that we are well placed to continue growing as the district cooling services provider of choice."

According to its FAQs, Empower has an 80% market share in the Dubai district cooling market. 

Reuters reports that the deal makes it the fourth state linked IPO of its kind so far this year, while Refinitiv Middle East reports comments from a press conference announcing the IPO that CEO Ahmad Bin Shafar has suggested the company is looking to expand in the UAE, the GCC and Egypt.