UAE renewables firm Masdar weighs possible IPO, sources say
Three people familiar with the situation have confirmed that Masdar, Abu Dhabi's state owned renewables company, is considering a public offering.
Two sources said that the company was considering a dual listing, one in New York and another in Abu Dhabi, to raise funds for renewable projects.
A third person confirmed that Masdar had held informal discussions with banks.
Two people have said that an IPO will not happen before 2026. One person said that the company might not even pursue an IPO. The three refused to give their names as the issue is not public.
In response to questions from the media, Masdar stated that it "has not current plans to become public". It also said it would not comment on market speculation.
The company stated that its focus is "continuing to be on integrating and scaling the business as well as unlocking synergies in order to achieve continued ambitious growth."
Masdar's shares are held by the Abu Dhabi government-owned majority power and water company TAQA. Mubadala Investment Company holds 33%, while ADNOC, the national oil company, owns 24%. ADNOC sent questions to Masdar while TAQA declined to comment. Mubadala refused to comment.
The firm is expanding its operations in Europe as well as Asia and the United States. The company aims to reach 100 gigawatts by 2030, up from 51 gigawatts at present.
Masdar, along with other large investors from the Gulf region and elsewhere have increased dealmaking in an industry hit by rising interest rates and debt costs. Energy giants such as Spain's Iberdrola or Italy's Enel are happy to sell minorities in wind and solar park to maximize returns and reduce debt.
Masdar agreed on Monday to pay around $200 million for a 49.9% share in a Spanish solar portfolio owned by Endesa (a unit of Enel), expanding their partnership and confirming an earlier report.
In November, it completed the acquisition of 70% of Terna Energy in Greece. The deal values the Greek renewables company at 3.2 billion euro ($3.5 billion).
Masdar announced in September that it would buy Spain's Saeta Yield in a $1.4billion deal from Canada's Brookfield, just two months after announcing its agreement to acquire a minority stake of a 2gigawatt solar portfolio owned by Endesa.
According to the latest financial statements, Masdar reported an operating profit of 11,4 million dirhams (US$30 million) in the first six months of 2024.
According to EY the Middle East is a hotspot for initial public offering, with a total of $12.6 billion raised last year. This comes despite a slowdown on other markets, such as Europe.
(source: Reuters)
