- Press Releases
September 2 (Renewables Now) - Saudi Arabia-based International Company for Water and Power Projects, better known as ACWA Power, today announced its intention to carry out an initial public offering (IPO) to list its shares on the main market of the Saudi stock exchange Tadawul.
The Saudi utility plans to issue a total of 85.34 million new ordinary shares, including some 81.2 million to the public and the rest to certain employees. The total number of shares to be issued represents 11.67% of the company’s share capital after a capital raise, it said in a statement.
Two sources have told Reuters that the company seeks to raise over USD 1 billion (EUR 843m) from its listing, which would value it at around USD 10 billion.
Riyadh-based ACWA Power develops, owns and operates long-term contracted power generation and desalinated water facilities around the world, including wind, solar photovoltaic (PV) and concentrated solar power (CSP) projects. The company is responsible for the development of a big chunk of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai.
At present, ACWA Power has 20.3 GW of electricity generating capacity and aims to double that to 41.6 GW within the next four years. Its existing, under-construction and in-development power plants in Saudi Arabia account for an estimated 24% of the Kingdom’s gross power generation capacity. The company has committed to refrain from making further investments in coal.
The share of renewable energy in ACWA Power’s total gross power capacity currently amounts to 33% and is expected to hit 50% by the end of the decade. The company aims to achieve net-zero emissions by 2050.
In the pursuit of these objectives, ACWA Power has entered into a strategic framework agreement with its majority shareholder, the Public Investment Fund (PIF), to jointly develop the projects allocated to PIF under the PIF Renewable Energy Development Programme. Overall, the company recognises future greenfield growth opportunities in its target markets of about 385 GW.
ACWA Power noted it will use the net proceeds from the IPO to further bolster its balance sheet and to finance future projects.
(USD 1.0 = EUR 0.843)