Power giant ACWA plans largest Saudi IPO since Aramco

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Saudi Arabia

Power giant ACWA plans largest Saudi IPO since Aramco

ACWA Power International, one of Saudi Arabia’s main vehicles for building renewable energy projects, is set to raise up to SR4.55 billion ($1.2 billion) in what would be the biggest offering in Riyadh since Saudi Aramco’s listing.

The Riyadh-based utility, half-owned by the kingdom’s sovereign wealth fund, has set the price range for its offering between SR51-56 per share, according to a statement on Tuesday.

Sources say Riyadh listing may value ACWA Power International at $10bn or more

The company is selling 81.2 million shares, or an 11.1 percent stake, to raise financing for its transformation into a low-carbon energy producer.

The listing will value ACWA at up to $11 billion.

The Saudi government sold 2 percent of Aramco in its 2019 IPO, raising almost $30 billion. It’s still the largest first-time share sale on record.

ACWA Power “aims to play a major role” in the transition to greener energy by producing renewable electricity and hydrogen, it said in a prospectus for investors. It will also focus on desalination in the Middle East, Asia and Africa.

Since the Saudi wealth fund boosted its stake in ACWA to 50 percent in November, the government has agreed with the company that it will help develop 70 percent of renewable