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ACWA Power is planning a stock market listing: Reuters
Posted on Thursday, 11 January 2018 13:30
Saudi Arabian electricity and water company ACWA Power is considering an initial public offering (IPO) and is picking banks to run the process, people familiar with the matter told Reuters.

According to the sources, the Middle Eastern business sent a request for proposals to lenders last week and expects to fetch around USD 1.00 billion for the listing.

ACWA Power, a developer of water and electricity projects in Africa and southeast Asia, is looking to sell about 30.0 per cent and float in Riyadh, two banking insiders observed, adding it could become one of the main beneficiaries of Saudi Arabia’s plans to expand the power industry.

One person told Reuters the group has plans to raise between USD 800.00 million and USD 1.00 billion, while another said it would fetch around SAR 3.50 billion and SAR 4.00 billion (USD 932.83 million and USD 1.07 billion).

The sources asked to remain anonymous due to the confidentiality of the discussions.

However, in a statement to Reuters a spokesperson for ACWA Power said as its operating platform expands to generate a stable revenue stream “the ownership of the company should be broadened to include the public”.

The representative added the business will make announcements in regards to the IPO as and when it has something meaningful to say.

Zephyr, the M&A database published by Bureau van Dijk, shows there were 14 announced stock market listings targeting a Saudi Arabian company in 2017.

Among those to file IPO documents were real estate investment trusts Mulkia-Gulf Real Estate REIT Fund and Al Rajhi REIT Fund, as well as men’s wear group Thob Al-Aseel Company and general trading service provider Zahrat Al Waha for Trading Company.

Reuters observed Saudi Arabia plans to produce 10.0 per cent of power from renewable sources in the next six years.

ACWA Power generates roughly 22.00 GW of power and has a close relationship with the country’s government as the number one sovereign wealth fund Public Investment Fund owns around 13.7 per cent of the group through a subsidiary, according to the news provider.

© Zephus Ltd