Taqa, the Abu Dhabi National Energy Company , said yesterday that the initial public offering (IPO) of its Moroccan unit was almost seven times oversubscribed. Also yesterday, Indian media reported the company was adding to its energy portfolio in the subcontinent., according to The National. The IPO of its power subsidiary in Casablanca – its first international listing – was oversubscribed 6.69 times, Taqa said. The sale had been expected to raise around 1.5 billion Moroccan dirhams (Dh667 million). Shares representing 9.47 per cent of Jorf Lasfar Energy Company (JLEC), the wholly owned unit that supplies 38 per cent of the Morocco's electricity, were listed on the exchange yesterday. Nearly 5 per cent of the subsidiary had been already placed with local institutional investors. Taqa retains around 85 per cent of JLEC, which has been valued at more than 9 bn Moroccan dirhams . "The great demand for JLEC shares reflects the strength of Taqa's power business in Morocco , where we are the market leader and have ambitious plans for growth," said Carl Sheldon , the chief executive. "The kingdom's energy needs are expected to double in the next seven years and Taqa will continue to be a vital partner in meeting this demand." A US$1.6bn expansion of the Jorf Lasfar facility is nearing its final stages, and once complete will allow it to supply half of Morocco's power. According to the Indian financial news site, Live Mint, the utility investor is leading a consortium, which includes a Canadian pension fund and the private equity investor IDFC Alternatives, to buy two hydroelectric projects from India's JaypeeGroup for $1.5bn . Taqa would take a 51 per cent stake, according to the report. A Taqa spokesman declined to confirm talks for a deal in India . Although Jaiprakash PowerVentures, the subsidiary of Jaypee that operates the plants, turns a profit, Jaypee Group has been racing to pare down debt of more than 500 bn rupees (Dh29.73bn) by selling assets such as a cement plant in Gujarat . The two power plants in the prospective sale together have a capacity of 1,300 megawatts and are located in Himachal Pradesh , where Taqa already holds a majority stake in a 100MW hydro-electric plant. It also operates a 250MW coal-fired power plant in Tamil Nadu .; All Rights Reserved - Mubasher Info
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