Saudi Arabia’s ACWA Power International is close to announcing an initial public offering to raise more than $1 billion, according to people familiar with the matter.
A Riyadh listing may value the utility at $10 billion or more, said the people, who asked not to be named. An announcement may be made as soon as this week, they said.
Acwa Power didn’t immediately respond to requests for comment.
While ACWA runs many natural gas-fired power plants, the Saudi government plans to make it the main vehicle for the kingdom’s major solar and green-hydrogen projects.
ACWA is part of a consortium, along with US-based AirProducts and Chemicals Inc, developing a $5 billion plant that will export green hydrogen from the new city of Neom. It’s also building a renewable power project for the kingdom’s Red Sea Development Co.
Saudi Arabia’s Public Investment Fund raised its stake in ACWA Power to 50 percent last year, saying the move was part of the wealth fund’s strategy to support renewable energy developments. The PIF may not sell down its stake if an IPO goes ahead, said the people.
No final decision has been made and Acwa may decide against the transaction, they said. The PIF didn’t immediately respond to a request for comment.
A $1 billion deal would be one of the largest listings in the kingdom and comes at a time of renewed investor appetite for new offerings.
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