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Wednesday, April 02, 2025

Masdar IPO could help accelerate Gulf’s energy transition

By Vijay Valecha in 'Century in News'

Masdar IPO could help accelerate Gulf’s energy...

Vijay Valecha, MSN, April 2, 2025

An initial public offering by Abu Dhabi’s Masdar could mark a pivotal moment in the move towards cleaner sources of power in not only the world’s largest oil-producing region, but also in Europe, industry observers say.

Masdar, more officially known as the Abu Dhabi Future Energy Co, is considering an IPO next year to fund expansion and a listing on the Abu Dhabi exchange, according to reports this week.

Masdar has been on a buying and investment spree linked in part to the potential for the sunnier North Africa and Middle East region to be a source of renewable power to the colder more populous Europe.

Masdar’s acquisitions include a majority stake in Greece’s Terna Energy and investments in Spain.

The company is looking to develop more than 100 gigawatts of power-generating capacity by 2030.

“Masdar’s ambitious expansion plans add to its appeal,” says Vijay Valecha, chief investment officer at Century Financial.
The result could be robust interest in a Masdar IPO, Valecha says. Last year, Masdar sold $1 billion of bonds to finance growth, a sale that was almost five times oversubscribed.

Masdar has yet to disclose valuation targets for its potential IPO.

A valuation aligned with the FTSE ADX General Index, where the price-to-earnings (PE) ratio is a little more than 23:1, could place Masdar at around AED 2.6 billion ($700 million), according to Valecha.

By contrast, its regional peers such as Saudi Arabia’s Acwa Power, trade at a PE of more than 142:1 and Abu Dhabi National Energy Company (Taqa) at 50:1.

Source

MSN

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