Dubai: The Dubai district cooling company Empower had heated up the DFM charts on its first day of listing, gaining 6 per cent to Dh1.41 compared to the offer price of Dh1.33. This is the fourth listing on DFM by a Dubai government owned enterprise in recent months, starting with DEWA and followed by Tecom Group and Salik.
Within the first 15 minutes, Empower stock recorded volumes of 85 million and a value of Dh121 million. The stock settled in at Dh1.37, up 3 per cent. By 11.30am, the stock was trading in a narrow band of 1.5-6 per cent over the listing price.
Empower lays claim to the title of the world’s biggest district cooling service provider, and with its share of the market in Dubai pegged at 80 per cent. Post-IPO, the company intends to make further additions to its capacity (measured in RT or refrigerated tonnes) as the city keeps on adding to its built-up residential and commercial areas. Another possibility mooted by the company is targeted expansion beyond.
Through the IPO, Empower raised just over Dh2.6 billion.
"Empower is trading stead, though it has dipped a bit from the highs," said Vijay Valecha, Chief Investment Officer at Century Financial. "The price action is on anticipated lines as it is a utility company, which is considered a defensive stock. Generally, these types don't have much volatility.
"Nevertheless, Empower is the most actively traded by volume and value in DFM today, which indicates tremendous investor interest. With already around Dh200 million worth of shares traded, we expect the aggregate trading value in the first day to comfortably cross half a billion dirhams. Let us not forget that this is Dubai's fourth IPO of the year, an achievement as major developed markets have seen their primary market drying up.
"Amidst the tumultuous global market conditions, conducting this IPO succesfully is a remarkable feat."
