- Saudi Arabian utility developer ACWA Power has announced its intention to float on the Riyadh bourse in an initial public offering (IPO).
- Just over 81.2 million shares, representing 11.1 percent of the company, will be offered to the public.
“Over the next five years, the company will double the amount of power it generates, mostly from renewable sources amid a global shift away from burning fossil fuels,” said ACWA Power CEO, Paddy Padmanathan, in an interview with Bloomberg TV last week.
The company, half-owned by the Saudi Kingdom’s sovereign wealth fund and the Chinese Silk Road Fund, is drumming up support ahead of a planned IPO on the Saudi Stock Exchange.
“Investors that we have engaged with in pre-IPO presentations have received us very well,” Padmanathan said. “With our own established capability, capacity and track record, to drive the energy transition and reduce the cost of desalinated water,” we are in “the right place, at the right time,” he said.
Padmanathan said ACWA, which has announced plans to stop investing in new coal- or oil-fired power plants, could reach its net-zero emissions goal before an existing target of 2050.
ACWA’s IPO on the Saudi stock exchange could raise about US 1 billion, valuing the company at US 10 billion.
Author: Bryan Groenendaal