UAE “Empower” shareholders are considering increasing the size of the initial public offering to 20%

Two sources said today, Wednesday, that shareholders of the central cooling system company Empower in Dubai are considering increasing the size of the stake offered in the initial public offering to 20%.

Shareholders announced a 15% increase from 10% yesterday, Tuesday, justifying it with strong demand.

The Gulf region is seeing an IPO boom, with the governments of Saudi Arabia, Abu Dhabi and Dubai encouraging state-led listing programs, to take advantage of high oil prices and the relative scarcity of such offers. in other markets.

The two sources familiar with the matter said that no decision has yet been made on the shares of the Dubai-owned company.

One indicated that an increase in the size of the holding is possible, but will depend on market reaction and the Federal Reserve’s expected decision to raise interest rates later on Wednesday.

The second source said the deal is seeing strong demand within the region and elsewhere.

If Empower floats 20% of its shares, it could raise up to 2.66 billion dirhams ($ 724.28 million) in the subscription. in based on an indicative price range announced on Monday, with the final price set on November 9th.

The second source said that the initial public offering is likely to have the highest price, between 1.31 and 1.33 dirhams, given the strong demand, but a final decision has not yet been made.

Empower is the fourth state-owned entity seeking to list its shares in Dubai quest’year in a program aimed at strengthening investor interest in the local stock exchange.

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