Madrid/Dubai/London: Abu Dhabi’s state-owned renewable energy company, Masdar, is in the early stages of evaluating an initial public offering (IPO), according to three sources familiar with the matter.
Two sources indicated that Masdar is considering a listing in Abu Dhabi to secure funding for its renewable energy projects, with one suggesting that a dual listing in New York remains a possibility. However, two of the sources stated that an IPO would not materialize before 2026, while another cautioned that the company may ultimately decide against pursuing a listing.
As reported by the international news agency Reuters, Masdar, responding to inquiries, stated that it “has no current plans to go public” and refrains from commenting on “market speculation as a matter of policy.” The company emphasized its focus on “integrating, scaling, and unlocking synergies across the business, as we target continued ambitious growth.”
Masdar’s ownership structure comprises a 43% stake held by TAQA, a power and water firm majority-owned by the Abu Dhabi government, a 33% stake controlled by sovereign wealth fund Mubadala Investment Company, and a 24% stake held by ADNOC, the national oil company. ADNOC redirected questions to Masdar, while TAQA did not respond to requests for comment. Mubadala declined to comment.
Operating in more than 40 countries, Masdar is aggressively expanding its footprint across Europe, Asia, and the United States. The company aims to scale its renewable energy capacity from its current 51 gigawatts to 100 gigawatts by 2030, with projects at various stages of development.
With deep financial reserves, Masdar and other Gulf-based investors have ramped up acquisitions in the renewable energy sector, which has been impacted by rising interest rates and mounting debt costs. Energy giants such as Spain’s Iberdrola (IBE.MC) and Italy’s Enel (ENEI.MI) have been selling minority stakes in wind and solar projects to optimize returns and reduce debt.
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On Monday, Masdar agreed to acquire a 49.9% stake in a solar portfolio controlled by Spanish power utility Endesa (ELE.MC), a subsidiary of Enel, for approximately $200 million. This move expands their existing partnership and aligns with an earlier Reuters report.
In November, Masdar finalized its acquisition of a 70% stake in Greece’s Terna Energy, valuing the Greek renewables company at 3.2 billion euros ($3.5 billion). In September, it agreed to purchase Spain’s Saeta Yield from Canada’s Brookfield (BAM.TO) in a $1.4 billion deal, following a separate agreement two months earlier to take a minority stake in a 2-gigawatt solar portfolio controlled by Endesa.
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Masdar reported a net profit of 111.4 million UAE dirhams ($30.3 million) for the first half of 2024, according to its latest financial statements.
The Middle East has emerged as a hotspot for IPO activity, raising $12.6 billion in 2023, according to EY, even as global markets, including Europe, experienced a slowdown.
