Saudi Arabian utility developer ACWA Power on Thursday announced its intention to float on the Riyadh bourse in an initial public offering (IPO) sources have said could raise more than $1 billion.
The company, which is half-owned by the Kingdom’s sovereign wealth fund, plans to issue 85.3 million shares, representing 11.67% of the company after a capital increase.
Just over 81.2 million shares, representing 11.1 percent of the company, will be offered to the public.
Around 4.14 million shares, representing 0.57% of the company, will be allocated to certain employees of the company and its subsidiaries as part of its employee IPO grant plan.
A bidding and book building process for institutions will begin on Sept. 15 and end on Sept. 27, ACWA said in a document made public on Thursday. The subscription period for individuals runs from Sept. 29 to Oct. 1. The final share allocations will be made on Oct. 4.
About 70% of the IPO proceeds will go towards financing the company’s equity contribution to upcoming projects and the remaining 30% will be used for general corporate purposes, ACWA said.
About 160 million riyals ($42.66 million) from the proceeds will be applied to settle all the fees and expenses related to the IPO, including the fees of banks and lawyers.
ACWA made a profit of 902.4 million riyals in 2020, up from 880.1 million riyals in 2019 and a loss in 2018 of 898.9 million riyals, according to the prospectus.
