The initial public offering of Dubai-based district cooling provider Emirates Central Cooling Systems Corporation — better known as Empower — will happen “soon” but not in the current quarter, according to the chief executive of Dubai Electricity and Water Authority (Dewa).
"It [Empower's IPO] will be announced in due time, it won’t be in the current quarter of the year, probably at the end of the year," Saeed Al Tayer, who is also the managing director of Dewa, told Al Arabiya TV on Tuesday.
"We will announce the date at the right time," he said, without elaborating. Plans to list the company were first announced in December last year as part of Dubai’s strategy to boost its stock market and attract more capital.
Set up in 2003, Empower is a joint venture between Dewa and Dubai's Tecom Investments Group. The company, which has a 79.5 per cent share of of Dubai’s district cooling market, provides services to more than 1,400 residential, commercial, healthcare, hospitality, education, retail and entertainment buildings in the emirate.
The company reported a 4 per cent increase in its 2021 profit to Dh936 million ($255m) as revenue grew 9 per cent to Dh2.5 billion. In March, the company also announced a dividend of Dh500m to its shareholders for 2021. The total dividends paid to shareholders have amounted to Dh3.15bn since its inception, it said.
Dubai, which aims to boost its stock market amid a growing appetite for IPOs in the region, revealed plans last year to list 10 state-owned companies as part of its strategy to double the size of its capital market to Dh3 trillion and attract foreign investment.
The emirate also unveiled plans to set up a Dh2bn market maker fund to encourage the listing of more private companies from sectors such as energy, logistics and retail.
Earlier this month, Dewa became the first public entity to list on the Dubai Financial Market, raising Dh22.41bn in an oversubscribed share sale.
The IPO of the Dubai utility was the largest in Europe and the Middle East since Saudi Aramco’s debut in 2019. It has a market value of about $39bn and is the largest on the exchange.
Dewa will distribute Dh6.2bn in dividends annually, regardless of the size of the profits, Mr Al Tayer told Al Arabiya on Tuesday.
“The returns will be high for shareholders. The authority's cash flows are stable and it enjoys a strong operating performance,” he said.
“All shareholders will receive dividend returns equally in accordance with the law of the Securities and Commodities Authority.”
Dewa’s 2021 profit surged almost 75 per cent to about Dh7bn as demand for electricity rose in the emirate and the economy continues to recover strongly from the pandemic-driven slowdown.
Revenue reached Dh23.8bn and the value of assets at the end of 2021 climbed to Dh169.5bn.
Mr Al Tayer said the additional funds raised by the Dewa from the offer will not be used to reduce debt, as the proceeds will go to the selling shareholder, the Dubai government.
The next entity expected to be listed on the DFM is the Salik toll system, officials said last year. An IPO is also planned for Tecom Investments.
Empower has been expanding its operations and last year acquired the district cooling schemes of Nakheel, Meydan and Dubai International Airport for more than Dh2bn in total. It also began operations of new district cooling plants in Za’abeel and Dubai Production City.
Last month, it awarded a Dh193m contract to build a new generation district cooling plant in Dubailand. The construction of the building has already started, and the first phase of the plant will be operational by the first quarter of 2023 with a production capacity of 23,500 refrigeration tonnes (RT).
The plant's total production capacity upon completion will reach 47,000 RT, Empower said.
Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
GAC GS8 Specs
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Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Thanksgiving meals to try
World Cut Steakhouse, Habtoor Palace Hotel, Dubai. On Thursday evening, head chef Diego Solis will be serving a high-end sounding four-course meal that features chestnut veloute with smoked duck breast, turkey roulade accompanied by winter vegetables and foie gras and pecan pie, cranberry compote and popcorn ice cream.
Jones the Grocer, various locations across the UAE. Jones’s take-home holiday menu delivers on the favourites: whole roast turkeys, an array of accompaniments (duck fat roast potatoes, sausages wrapped in beef bacon, honey-glazed parsnips and carrots) and more, as well as festive food platters, canapes and both apple and pumpkin pies.
Ruth’s Chris Steakhouse, The Address Hotel, Dubai. This New Orleans-style restaurant is keen to take the stress out of entertaining, so until December 25 you can order a full seasonal meal from its Takeaway Turkey Feast menu, which features turkey, homemade gravy and a selection of sides – think green beans with almond flakes, roasted Brussels sprouts, sweet potato casserole and bread stuffing – to pick up and eat at home.
The Mattar Farm Kitchen, Dubai. From now until Christmas, Hattem Mattar and his team will be producing game- changing smoked turkeys that you can enjoy at home over the festive period.
Nolu’s, The Galleria Mall, Maryah Island Abu Dhabi. With much of the menu focused on a California inspired “farm to table” approach (with Afghani influence), it only seems right that Nolu’s will be serving their take on the Thanksgiving spread, with a brunch at the Downtown location from 12pm to 4pm on Friday.
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Director: Guy Ritchie
Stars: Colin Farrell, Hugh Grant
Three out of five stars
England Test squad
Ben Stokes (captain), Joe Root, James Anderson, Jonny Bairstow, Stuart Broad, Harry Brook, Zak Crawley, Ben Foakes, Jack Leach, Alex Lees, Craig Overton, Ollie Pope, Matthew Potts
CHELSEA SQUAD
Arrizabalaga, Bettinelli, Rudiger, Christensen, Silva, Chalobah, Sarr, Azpilicueta, James, Kenedy, Alonso, Jorginho, Kante, Kovacic, Saul, Barkley, Ziyech, Pulisic, Mount, Hudson-Odoi, Werner, Havertz, Lukaku.
FINAL LEADERBOARD
1. Jordan Spieth (USA) 65 69 65 69 - 12-under-par
2. Matt Kuchar (USA) 65 71 66 69 - 9-under
3. Li Haotong (CHN) 69 73 69 63 - 6-under
T4. Rory McIlroy (NIR) 71 68 69 67 - 5-under
T4. Rafael Cabrera-Bello (ESP) 67 73 67 68 - 5-under
T6. Marc Leishman (AUS) 69 76 66 65 - 4-under
T6. Matthew Southgate (ENG) 72 72 67 65 - 4-under
T6. Brooks Koepka (USA) 65 72 68 71 - 4-under
T6. Branden Grace (RSA) 70 74 62 70 - 4-under
T6. Alexander Noren (SWE) 68 72 69 67 - 4-under
Killing of Qassem Suleimani
The biog
Favourite hobby: taking his rescue dog, Sally, for long walks.
Favourite book: anything by Stephen King, although he said the films rarely match the quality of the books
Favourite film: The Shawshank Redemption stands out as his favourite movie, a classic King novella
Favourite music: “I have a wide and varied music taste, so it would be unfair to pick a single song from blues to rock as a favourite"
