ADWEA launches Taqa IPO

05 August 2005
Subscription was launched on 23 July and is due to close on 1 August to the initial public offering (IPO) of shares in Abu Dhabi National Energy Company (Taqa). The company was established by presidential decree in late June to own assets in the power, water, energy, oil and mineral sectors, both in the federation and abroad.

Taqa is currently 100 per cent owned by Abu Dhabi Water & Electricity Authority (ADWEA - MEED 24:6:05).

On offer - to UAE nationals and institutions only - are 600 million shares priced at AED 1 ($0.27) each, equivalent to 14.6 per cent of Taqa's AED 4,100 million ($1,117.20 million) capital. Individuals will be offered 50 million shares and 550 million shares will be sold to institutional investors. National Bank of Abu Dhabiis acting as lead manager.

Ninety per cent of Taqa's capital will be met by ADWEA transferring capital from its interests in five existing independent water and power projects (IWPPs), in each of which it owns a 60 per cent stake and foreign developers have the remaining 40 per cent.

ADWEA is looking increasingly at activities outside Abu Dhabi. It is handling the proposed Fujairah IWPP and has taken a stake in the Sohar smelter project in Oman.

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