MADRID/DUBAI/LONDON - Abu Dhabi's state-owned renewables company Masdar is in the early stages of considering an initial public offering, three people with knowledge of the matter told Reuters.

The company is considering a possible listing in Abu Dhabi to raise funding for renewable projects, said two of the sources, with one of them saying a dual listing in New York was also possible.

Masdar has held informal talks with banks, a third person said.

An IPO would not come before 2026, two of the people said. The company may not pursue an IPO at all, one said. All three people declined to be named as the matter is not public.

Masdar said it "has no current plans to go public", in response to Reuters questions, adding it did not comment on "market speculation as a matter of policy."

The company said its focus "continues to be on integrating, scaling, and unlocking synergies across the business, as we target continued ambitious growth."

Masdar is held 43% by Abu Dhabi government majority-owned power and water firm TAQA, 33% by sovereign wealth fund Mubadala Investment Company, and 24% by national oil firm ADNOC. ADNOC directed questions to Masdar, while TAQA did not respond to a request for comment. Mubadala declined to comment.

The renewables firm, which operates in more than 40 countries, is expanding in several parts of Europe, as well as in Asia and the United States. It is seeking to increase its capacity to 100 gigawatts of renewable energy by 2030 from about 51 gigawatts now, at various stages of development.

Masdar and other deep-pocketed investors from the Gulf and other regions have intensified dealmaking in a sector hit by high interest rates and rising debt costs, with energy giants like Spanish utility Iberdrola and Italy's Enel happy to sell minority stakes in wind and solar parks to maximise returns and curb debt.

Masdar on Monday agreed to pay about $200 million to buy a 49.9% stake in a solar portfolio controlled by Spanish power utility Endesa, a unit of Enel, expanding their existing partnership and confirming a previous Reuters report.

In November it closed the acquisition of a 70% stake in Greece's Terna Energy, a deal that values the Greek renewables firm at 3.2 billion euros ($3.5 billion).

In September, Masdar agreed to buy Spain's Saeta Yield from Canada's Brookfield in a $1.4 billion deal, two months after it agreed to take a minority stake in a 2 gigawatt solar portfolio controlled by Endesa.

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 become a bright spot for initial public offerings, raising $12.6 billion last year in total according to EY, amid a slowdown in other markets such as Europe.

($1 = 3.6728 UAE dirham)

($1 = 0.9237 euros) (Reporting by Pietro Lombardi, Hadeel Al Sayegh and Andres Gonzalez. Additional reporting Yousef Saba. Editing by Anousha Sakoui and Mark Potter)


Reuters