REM: Saudi’s leading operator of power generation and desalinated water plants ACWA Power to privatise minority stake

Saudi Arabia’s 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 that it intends to proceed with its capital increase through an initial public offering (IPO), listing its shares on the Saudi Stock Exchange.

The IPO of the company, which has been expanding its presence in solar and wind, could raise more than $1bn, Reuters reported sources as saying.

The company will issue 85,336,851 new ordinary shares with a nominal value of SAR10 each, which will represent 11.67% of the company's share capital after the capital increase. The final price at which all subscribers in the offering will purchase shares will be determined at the end of the book-building period.

Founded in Riyadh in 2004, ACWA Power is backed by its majority owner Public Investment Fund, the Saudi sovereign wealth fund. Today it has 64 projects in operation, under construction or in advanced development in 13 countries across three continents, with a total project cost of SAR248bn ($66bn).

The company’s operational capacity across all markets currently provides 20.3 GW 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 41.6 GW and more than double its operational desalinated water production capacity to 6.4 mcm per day.

In addition to its existing portfolio of operational, under construction or advanced development assets, the company’s growth opportunities include a short-term pipeline of more than 85 identified projects representing an overall potential capacity of 68 GW of power and 9.5 cubic metres per day of water from desalination assets coming up for tender or currently under negotiation.