Dubai Investments unit to lead Emicool IPO
Al Mal Capital, a financial institution wholly owned by Dubai Investments, will lead Emicool's IPO, which will be listed on the Dubai Financial Market
Dubai Investments has named an entity to lead the initial public offering (IPO) of Emirates District Cooling (Emicool).
Al Mal Capital, a financial institution that is one of Dubai Investments' wholly owned subsidiaries, will be the lead manager for the IPO, which will be listed on the Dubai bourse.
It was revealed earlier this month that Emicool's IPO may be launched in Q4 2018.
Emicool provides district cooling services to neighbourhoods such as Dubai Motor City (pictured), Uptown Mirdif, and Damac Hills, and expects to increase its plant capacity to 500,000 refrigeration tonnes (TR) by 2020.
Khalid bin Kalban, managing director and chief executive officer of Dubai Investments, signed an agreement with Nasel Al Nabulsi, vice chairman and chief executive officer of Al Mal Capital, to formalise the deal.
Commenting on the agreement, Kalban said: "Since its inception, Emicool has registered steady growth and achieved consistent profits.
"The IPO of Emicool will help strengthen the company’s balance sheet, increase its visibility, and providing access to global investors, which in turn will offer great flexibility to pursue new growth, and boost its expansion and diversification opportunities in line with its planned roadmap."
Kalban added that the IPO was part of Dubai Investments' strategy "to scale up its business and operations in global markets".
Meanwhile, Al Mal Capital's Nabulsi said: "Emicool is one of the key players in the Gulf and has carved a niche with new contracts amidst surging demand for district cooling solutions in the region.
"Al Mal Capital is privileged to work with Dubai Investments on this IPO, providing the investor community [the chance] to be an integral part of this growth journey," Nabulsi added, according to WAM.
This January, Dubai Investments announced the acquisition of a 50% stake in Emicool.
The share was purchased for $136.1m (AED500m) from Union Properties, which revealed its intention to sell its stake in the district cooling company earlier that month.
Commenting on the development at the time, Kalban said: "The transaction strengthens Dubai Investments’ portfolio in the utility service domain, growing its asset base, and is expected to boost future profitability and deliver value to shareholders."
Following the acquisition, Dubai Investments' earnings before interest, taxes, depreciation, and amortisation (EBITDA) will rise by $30m (AED110m), and assets will increase by $490m (AED1.8bn).
Kalban said Dubai Investments' liabilities would increase by $326.7m (AED1.2bn).
Nasser Buttin Omair bin Yousef, chairman of Union Properties, recently said that the sale of its Emicool stake was part of its growth plans for 2018 and beyond.
"Our recent decisions, such as selling our stake in Emicool and buying shares in Palm Hills, will contribute towards strengthening our portfolio and expanding our operations and development projects, as well as supporting our growth strategy," Yousef added.