ACWA Power International, one of Saudi Arabia’s main vehicles for building renewable energy projects, has set the offer price for its initial public offering at the top of a range as investors flock to share sales in the kingdom.
The power producer, which will be 44 percent owned by Saudi Arabia’s sovereign wealth fund after the IPO, said it will sell shares at 56 riyals ($14.93) apiece after the institutional part of the offering ended.
It will raise $1.2 billion for ACWA and value the company at $10.9 billion.
Demand for stock offerings in Saudi Arabia has never been higher. Arabian Internet and Communications Services Co, also known as solutions by stc, attracted over SR471 billion in orders for its IPO earlier this month.
Plenty more are in the pipeline, including the stock exchange itself and the specialty chemicals business of Saudi Basic Industries Corp.
ACWA is a key part of Saudi Arabia’s plan to transform its energy sector, boosting renewable power generation to reduce emissions and the amount of hydrocarbons that are burnt to make electricity and could be more profitability exported.
Over the next five years, the company will double the amount of power it generates, mostly from renewable sources, CEO Paddy Padmanathan (pictured above) told Bloomberg earlier in September.
ACWA’s IPO is the biggest offering in Riyadh since Saudi Aramco’s listing in 2019.
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