International Company for Water and Power Projects (ACWA Power), a leading developer, investor and operator of power generation and desalinated water plants worldwide, has announced its intention to proceed with an initial public offering (IPO) and list its shares on the main market of the Saudi stock exchange (Tadawul).
In Oman, ACWA Power is a leading developer and operator of independent power projects (IPPs) and independent water projects (IWPs) located in Barka, Ibri, Salalah and Sohar.
The Saudi Capital Market Authority on June 30, 2021 approved ACWA Power’s application for the IPO of 81.199mn new ordinary shares, representing 11.1 per cent of the company’s enlarged share capital. The final price at which all subscribers in the IPO will purchase shares will be determined at the end of the book-building period, the company said in a statement on its website.
A book-building process for institutional investors will start on September 15 and close on September 27. The subscription period for individual investors will start from September 29 to October 1, according to the company.
The final allotment of shares will be made on October 4 and trading of ACWA Power shares on Saudi bourse will start on October 6.
Founded in Riyadh in 2004, ACWA Power today has 64 projects in operation, construction or advanced development in 13 countries across three continents, with a total project cost of SAR248bn (US$66bn).
ACWA Power’s operational capacity across all markets currently provides 20.3GW of electricity and 2.8mn cubic metres per day of desalinated water. Once existing projects under construction and in advanced development are completed and brought into operation within the next four years, the company will double its operational power generation capacity to 41.6GW and more than double its operational desalinated water production capacity to 6.4mn cubic metres per day.
Mohammad A Abunayyan, chairman of ACWA Power, said, “Since ACWA Power’s inception 17 years ago in Saudi Arabia, our mission has been to provide these life-sustaining utilities in a reliable and responsible manner, at low cost. Over the past decade, our business model has gone from strength to strength, and today ACWA Power emerges as not only a power generation and desalination champion at home in the kingdom but also as a company enabling and driving the worldwide transition to a greener, cleaner future.”
He added: “We are deeply honoured that the Public Investment Fund has entrusted us with spearheading the implementation of the National Renewable Energy Programme and proud to be a national champion, making tangible contributions to Saudi Vision 2030 initiatives.”
Paddy Padmanathan, CEO of ACWA Power, said, “A historic shift towards renewable energy sources is underway. We at ACWA Power are honoured to be at the forefront of this transition, championing a decarbonised and more sustainable future to support economic growth and social prosperity. For nearly two decades, we have worked to develop our robust business model, which is underpinned by long-term contracts and diversified assets across geographies and technologies.”
According to the company’s statement, the issuance of 85.33mn new ordinary shares with a nominal value of SAR10 each will comprise (i) an IPO of 81.199mn shares for public subscription and (ii) the allocation of 4.137mn shares (or 0.57 per cent of share capital) to certain employees of ACWA Power and its subsidiaries in accordance with the terms of the employee IPO grant plan.
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