Empower plans to offer 10% of its shares in an IPO: The Emirates Central Cooling Systems Corporation (Empower) is looking to pull the trigger on the initial public offering of a 10% stake on the Dubai Financial Market (DFM) next week, the company said in its intention to float (pdf) yesterday. The district cooling firm — which is looking to raise USD 700 mn from the IPO — was one of 10 state-owned firms slated for listing last November by Dubai’s government privatization program.

What’s being sold? The 1 bn ordinary shares being offered are held in aggregate by Dubai Electricity and Water Authority (DEWA) — which owns 70% of the company — and Emirates Power Investment (a Dubai Holding subsidiary). DEWA is selling 7% of its shares and Emirates Power is selling 3% in the IPO, according to the ITF.

The time frame: The company plans to price the offering and kick off its subscription period next Monday, 31 October. Subscriptions will close on 7 November for UAE retail investors and 8 November for other qualified investors, the statement notes. Empower’s shares are expected to begin trading on the DFM on 16 November, its website says.

Empower plans to pay out dividends twice a year post-IPO, flagging April and October every year as payment periods, the ITF says. It intends to pay a minimum dividend amount of AED 850 mn (almost USD 231.5 mn) per year in the two fiscal years following the IPO, spanning April 2023 to October 2024. After 2024, it plans to pay “a sustainable dividend” aligned with business growth, the statement adds. DEWA and Emirates Power were paid AED 2.9 bn (USD 790 mn) in dividends from a pre-IPO special payment. Empower borrowed USD 1.5 bn from Emirates NBD Bank for the special dividend payment ahead of the IPO, we noted yesterday.

ADVISORS- Empower appointed Merrill Lynch, Citigroup and Emirates NBD as joint global coordinators on its IPO, with our friends at EFG Hermes acting as joint bookrunner. Moelis and Emirates NBD are acting as financial advisers. Emirates NBD is the lead receiving bank for the transaction, while Abu Dhabi Islamic Bank, Ajman Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, First Abu Dhabi Bank, Mashreq Bank, MBank, and Sharjah Islamic Bank are receiving banks.