Jorf Lasfar Energy Company (JLEC), TAQA's wholly owned Moroccan subsidiary, has received approval to be listed on the Casablanca Stock Exchange.
JLEC, which operates Morocco's largest power complex, is authorised by the Conseil D'ontologique des Valeurs Mobilieres (CDVM) to create a total of 2,234,638 new shares, offered at a price of MAD 447.5 with a nominal value of MAD 100. These shares represent 9.47% of JLEC and will be floated on the exchange. In addition to that, 4.74% of shares were offered and fully subscribed through private placement to key Moroccan institutional investors prior to the initial public offering. TAQA will retain 85.79% of JLEC.
Carl Sheldon, TAQA's Chief Executive Officer, said, "The IPO will allow the Moroccan people and institutions to invest in their largest electricity generator. TAQA is committed to supporting Morocco's strategy of securing the supply of energy while diversifying its fuel mix." Abdelmajid Iraqui Houssaini, Chief Executive Officer of Jorf Lasfar Energy Company, said, "JLEC is the leading energy operator in Morocco and we feel that this new step will allow us to anchor our business in the Moroccan economy by opening up our capital to institutional investors." TAQA has almost completed a USD1.6 billion expansion of the Jorf Lasfar power complex, which will increase its generation capacity by 700 megawatts (MW) to 2,056 MW. Two new units are scheduled to be commissioned next year.
Jorf Lasfar supplied 38 per cent of the Kingdom's electricity in 2012, and the expansion is vital to enabling national economic growth and job creation. TAQA is also developing alternative energy projects for Morocco, including wind power.
Electricity consumption in Morocco is expected to double by 2020 and quadruple by 2030.