EMPOWER Image Credit: Ahmed Ramzan/ Gulf News

Dubai: Dubai increased the size of Emirates Central Cooling Systems Corp.’s initial public offering for a second time this week after drawing strong investor demand.

Shareholders Dubai Electricity & Water Authority and Emirates Power Investment will now sell 2 billion shares - a 20 per cent stake - in the IPO, according to terms of the deal obtained by Bloomberg News. The listing will now raise as much as Dh2.66 billion ($724 million).

The initial plan to sell 10 per cent of the company would have made the deal one of the smallest offerings in Dubai this year. Demand for the IPO had exceeded the deal size hours after books opened on Monday, and the selling shareholders increased the deal size to 15 per cent a day later.

The deal is part of Dubai’s privatization drive to increase liquidity and catch up with a flurry of share sales in Abu Dhabi and Saudi Arabia. The city’s three IPOs this year have raised about $7.6 billion combined and the government increased the size of two of these listings - DEWA and Salik - after drawing significant demand.

Empower will announce final pricing on November 9 and make its trading debut on November 15. The UAE Strategic Investment Fund, Shamal Holding and Abu Dhabi Pension Fund are cornerstone investors with a total commitment of up to Dh335 million.

Citigroup Inc., Emirates NBD Capital, Merrill Lynch International and EFG-Hermes are managing the IPO. Moelis & Co. is the independent financial adviser to Empower.