ACWA Power International, which specializes in building renewable energy projects, is set to raise up to 4.55 billion riyals ($1.2 billion) in what would be the largest initial public offering in Saudi Arabia since the listing of oil giant Aramco.
The company, in which the Public Investment Fund contributes with a 50% stake, has set the price range for the offering between SAR 51 and SAR 56 per share, and the company is scheduled to sell 81.2 million shares, or an 11.1% stake, to raise financing for its conversion into a low-carbon energy product.
While the upper end of the offering price range indicates that the value of AquaPower is estimated at about $11 billion.
The company’s capital after the offering amounted to 731 million and 99 thousand and 729 shares, which brings the value of the company between 37.3 billion riyals ($ 9.9 billion) and 40.9 billion riyals ($ 10.9 billion), according to Al Arabiya.net calculations.
Today, institutional subscriptions for the public offering of ACWA Power began and will end on Monday, September 27, 2021, and individual subscriptions will begin on September 29.
After the completion of the institutional subscription and the book building process, the final offer price of the company’s shares will be determined, within the price range set by the company between 51 and 56 riyals per share.
The minimum number of offering shares that can be subscribed to for the participating classes (institutions) is 100,000 shares, while the maximum is 36,544,986 shares.
Participation in order book building is limited to categories qualified to participate in the order book building process in accordance with the instructions for book building and allocating shares in initial subscriptions issued by the Board of the Capital Market Authority.
The number of offering shares that will be initially allocated to the participating classes is 81,199,299 offering shares, representing 100% of the total offering shares, provided that the final allotment is after the end of the individual subscription period.
In the event that individual subscribers subscribe to all of the offering shares allocated to them, the subscription registry managers have the right to reduce the number of shares allocated to the participating classes to 73,079,370 offering shares – as a minimum – representing 90% of the total offering shares.
Aquapower has selected JPMorgan, Citigroup, Riyad Capital and Natixis as financial advisors for the offering.
This comes as the largest offering on the Saudi Stock Exchange after the Saudi government sold 2% of Aramco in its public offering in 2019, and raised nearly $30 billion, which is the largest global number of any offering in history.
Last week, ACWA Power CEO Paddy Padmanathan said in an interview with Bloomberg TV that the company would double the amount of energy it generates over the next five years, mostly from renewable sources, amid a global shift away from burning fossil fuels.
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