Acwa Power launches IPO process
Saudi Arabia’s Acwa Power has announced its Intention to Float (ITF) on the Saudi Stock Exchange, Tadawul, with the utilities developer planning to offer 11.1 per cent of the company in its initial public offering (IPO)
Saudi Arabia’s Acwa Power has announced its Intention to Float (ITF) on the Saudi Stock Exchange, Tadawul, with the utilities developer planning to offer 11.1 per cent of the company in its initial public offering (IPO).
Energy & Utilities previously reported that Saudi Arabia’s Capital Market Authority (CMA) had approved Acwa Power’s application for the IPO of 81,199,299 shares on 30 June. The final price at which all subscribers in the offering will purchase shares will be determined at the end of the book-building period.
The ITF was issued on 2 September along with the International Offering Circular (IOC).
Subscription to the offer of shares will be restricted to:
- Participating Parties (any investor who is approved by the CMA)
- Individual Investors (Saudi nationals, GCC nationals and foreign residents in Saudi Arabia)
The utilities developer has set the following timeline for the IPO process:
- 2 September: Publication of ITF, prospectus and IOC
- 14 September : Price range announcement
- 15 September: Start of participating parties book-building
- 27 September: Close of participating parties bookmaking
- 27 September: Price announcement
- 29 September: Start of individual investors’ subscription period
- 30 September: Last day of fund transfer
Acwa Power, founded in 2004, has 64 projects in operation, under construction or under development in 13 countries across three continents. Combined, the projects have a total cost of $66bn and include 20.3GW of power and 2.8 million cubic metres per day (cm/d) of desalinated water.
Once existing projects under construction and in advanced development are completed and brought into operation within the next four years, the company will double its operational power generation capacity to 41.6GW and more than double its desalinated water production capacity to 6.4 million cm/d.
Approximately 77 per cent of Acwa Power’s power generation holdings are in clean-energy projects – which includes renewables and low-carbon sources.
In November 2020, Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) increased its ownership stake in local developer Acwa Power from 33.6 per cent to 50 per cent.
The investment is part of PIF’s plans to diversify its holdings into renewable energy.
PIF’s initial investments in Acwa Power were made in 2013, when Sanabil, a fully-owned subsidiary of PIF, acquired a stake in the developer. PIF made its first direct investment in Acwa Power in 2018.
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