UAE’s Empower shares rise 9% in trading debut

The company's market value will reach AED 13.3 bn
UAE’s Empower shares rise 9% in trading debut
Empower's IPO (Image credit: Dubai Media Office)

The shares of Emirates Central Cooling Systems Corporation “Empower” increased by 9 percent to 1.45 dirhams at the start of today’s session, its first trading day on the Dubai Financial Market (DFM).

The market value of “Empower”, which started trading under the ticker symbol “EMPOWER”, will reach 13.3 billion dirhams, based on its final offering price, which was set last week at 1.33 dirhams per share.

Read more: Dubai’s Empower raises retail offering in its IPO

The subscription for Empower shares began on October 31, 2022, with an offering of 10 percent of the company’s capital, equivalent to one billion shares, which was then increased twice to two billion shares, equivalent to 20 percent of the firm‘s total capital.

The individual segment received 300 million shares from the offering shares, while the institutional segment received 1.7 billion shares. In addition, the subscription was covered more than 46 times for institutions and 49 times for individuals.

Empower is the fifth listing in DFM this year and the fourth of ten proposed offerings for government and semi-government entities.

“Due to the rapid implementation of this program, the DFM has become one of the most active financial markets globally in terms of new IPOs and listings this year. This momentum underscores the sound fundamentals of the economy in Dubai and the UAE and investors’ deep confidence,” said Helal Al Marri, chairman of the DFM.

The MENA region had 24 IPOs in the first half of this year. The UAE was the biggest IPO market in terms of the aggregate value of deals, while Saudi Arabia led volume with five IPO deals in the first six months of the year, according to data released by consulting firm Ernst &  Young (EY).