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.
The offering values the company at $10 billion or more, sources said. They said that the announcement may be released as soon as this week, according to Bloomberg Agency, and seen by Al Arabiya.net.
While ACWA Power operates several natural gas-fired power plants, the Saudi government plans to make it the main driver of green solar and hydrogen projects in the kingdom.
ACWA Power is part of a consortium, along with US-based Air Products & Chemicals, to develop a $5 billion plant that will export green hydrogen. From the city of NEOM, it is also building a renewable energy project for the Red Sea Development Company in the Kingdom.
The Public Investment Fund of Saudi Arabia raised its stake in ACWA Power to 50% last year, saying the move was part of the wealth fund's strategy to support renewable energy development. The sources revealed that the Public Investment Fund may not sell its stake in the initial public offering.
They said that no final decision has been made and ACWA Power may make a different decision.
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The $1 billion deal will be one of the largest listings in the kingdom and comes at a time when investor appetite for new offers is renewed.
Riyadh has been the most exciting IPO market in the Middle East over the past two years, thanks mostly to local retail and institutional investors. The Development Food Company, Theeb Rent a Car Company, and Al-Khorayef Water and Energy Technologies Company were the latest offerings in the Kingdom this year.
Other companies backed by the Public Investment Fund, including Tadawul Market and digital security firm Alam, are expected to sell shares on the Saudi Stock Exchange this year.
Saudi Telecom Company - owned by the wealth fund - and Saudi Basic Industries Corporation (SABIC) may also offer stakes in their subsidiaries.
