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UAE's Empower cancels IPO plans amidst oil turmoil

Expansion plans into Qatar and Saudi Arabia have also been stalled after state spending was cut in light of low oil prices, CEO Ahmed Bin Shafar said

Empower has stalled plans to float an IPO.
Empower has stalled plans to float an IPO.

Dubai-based cooling provider, Empower, confirmed it has halted its plans to go public amidst challenging market conditions. 

The company's chief executive officer, Ahmed Bin Shafar, said the move will have to wait until "the right time". 

The company also halted expansion plans into Qatar and Saudi Arabia after state spending was cut in both countries due to dwindling crude values. 

He added: "Empower is a company that must go public; we have studied this.

"We came up with the result that we will [launch an] initial public offering (IPO), but the market conditions are not encouraging.

"We are freezing the decision until we see the right time," Shafar added. 

Shafar estimated Empower's 2016 profit will be (AED600m), while revenue would be (AED1.8bn). 

The utility's cooling capacity increased 6.7% to 1.12 million TR year-on-year. 

The firm was providing air-conditioning to 810 buildings by the end of 2015, up from 746 a year ago. 

According to Arabian Business, Shafar said he expects to add 52 buildings to Empower's portfolio in 2016. 

Of the (AED1.2bn) funds Empower requires to pay for projects under construction, 80% will be sourced from local and international banks, with the company footing the remaining 20%.  

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Mar 21, 2020