RIYADH: ¶¶Òõ¶ÌÊÓƵn utility developer ACWA Power on Thursday made an announcement on the Tadawul stock exchange that it intends to proceed withÌýits plan to float on the Riyadh bourse.
Riyad Capital, Citigroup ¶¶Òõ¶ÌÊÓƵ, J.P. Morgan ¶¶Òõ¶ÌÊÓƵ Company and Natixis ¶¶Òõ¶ÌÊÓƵ Investment Company will act as financial advisors, book-runners, and underwriters on the potential initial public offering, ACWA said in a statement on the Tadawul.
The company, 50 percent owned by the Kingdom's Public Investment Fund (PIF), plans to issue 81,199,299 new ordinary shares, representing 11.1 percentÌýof the company’s enlarged share capital.Ìý4,137,552Ìýshares, representing 0.57 percentÌýof the company’s share capital after the capital increase, will be awardedÌýto certain employees of the company and its subsidiaries.
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ACWA Power has announced its intention to proceed with an Initial Public Offering today and list its shares on the . For more information, visit here
— ACWA Power-Accelerating Energy Transition Globally (@ACWAPower)
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Substantial shareholders, defined asÌýthose who own 5 percentÌýor more of the company's share capital prior to the offering, will be subject to a six-month lock-up period during which they will not be able to sell their shares.ÌýSubstantial shareholders are the PIF, Vision International Investment Company and Al Rajhi Holding Group Co., ACWA said in the statement.
ACWAÌýwill use the net proceeds of the offering to strengthen its balance sheet and fund future projects in the energy and water desalination sectors over the next five years, it said.
"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 Vision 2030 initiatives,"ÌýMohammad A. Abunayyan, chairman of the board of directors, said in the statement. "ACWA PowerÌýAffordable, low-carbon power generation and water desalination is critical for the sustainable development of economies."
The IPOÌýcould raise more than $1 billion, valuing the company at about $10 billion, according to Reuters.Ìý
ACWA Power originally planned an IPO in early 2018 but the plan was delayed by problems with a power plant project in Turkey, a source familiar with the matter told Reuters at the time.
