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Sun 11 Feb 2018 03:34 PM

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Dubai Investments plans IPO of Emicool unit in Q4

Dubai Investments CEO Khalid bin Kalban says Emicool will be valued at between #353.9 million and $408.3 million

Dubai Investments plans IPO of Emicool unit in Q4

Dubai Investments plans to sell shares in its cooling unit Emicool in the fourth quarter and aims to start a AED 3 billion ($817 million) real estate investment trust as it seeks to boost profit.

Chief Executive Officer Khalid Bin Kalban told Bloomberg Television that Al Mal Capital PSC, majority-owned by DIC, is advising the company on the planned initial public offering and that more banks will be hired. The process will hopefully value Emicool, formally called Emirates District Cooling LLC, at between AED 1.3 billion ($353.9 million) to 1.5 AED billion ($408.3 million), he said.

Dubai Investment’s businesses range from real estate to glass production. The company last month bought Union Properties PJSC’s entire stake in Emicool for AED 500 million ($136.1 million), making it its sole owner. Dubai Investments may sell 30 percent of its stake in the IPO of Emicool, which provides cooling services to hundreds of homes and offices in areas such as Dubai Investments Park and Motor City, Bin Kalban had said in 2016.

“Emicool will go through a transition and we’ll make one acquisition in the second quarter, perhaps two depending on circumstances,” he said on Sunday. “We’re hoping to go for a private placement in the third quarter and then an IPO.”

Dubai Investments on Sunday reported an 18 percent decline in full-year profit to AED 1 billion ($27.2 million), as some transactions scheduled for 2017 were delayed to this year, Bin Kalban said. The first quarter of 2018 will be much stronger than the last three months of last year, with earnings expected to grow as much as 25 percent, he said.

The decline in profit in 2017, though, would probably mean that dividends for the year will remain the same as in the preceding year, he said. DIC paid a dividend of 11 fils a share in 2017 as well as a 5 percent bonus.

Bin Kalban said Dubai Investments also plans to list its real estate investment trust either on Nasdaq Dubai or Dubai Financial Market, possibly this year. The company has real estate projects valued at AED 9 billion ($2.45 billion) underway, of which AED 5 billion ($136.1 million) of property is under construction and the rest in tender, design stage or awaiting approvals.

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