11/01/2018 11:00 AST

Saudi Arabia’s ACWA Power has invited banks to bid to arrange an initial public offer of its shares, which is expected to raise up to $1 billion, sources told Reuters on Wednesday.

ACWA Power, a developer of electricity and water projects in the Middle East, Africa and southeast Asia, sent a request for proposals to banks last week, the sources said, declining to be named because of the commercial sensitivity of the matter. The company did not immediately respond to a request for comment.

The firm could become one of the main beneficiaries of Saudi Arabia’s effort to develop its power industry, particularly renewable energy. It is looking to sell a 30 percent stake to investors and list in Riyadh, two banking sources said.

One of the sources said the company was looking to raise between $800 million and $1 billion, while another estimated it would raise 3.5 billion riyals ($933 million) to 4 billion riyals.

The company said in statement to Reuters: ”ACWA Power has consistently maintained that as its operating platform grows sufficiently to generate a stable and predictable revenue stream, the ownership of the company should be broadened to include the public.

”We will make announcements on this subject as and when we have something meaningful to say.”

Saudi Arabia aims to produce 10 percent of its power from renewable sources in the next six years as it pushes ahead with a multi-billion-dollar plan to diversify its energy mix and free up more crude oil for export.

According to its own figures, ACWA Power’s portfolio generates more than 22 gigawatts of power, with investments valued at over $30 billion.

ACWA has close relations with the Saudi government, with the country’s top sovereign wealth fund, the Public Investment Fund, owning 13.7 percent indirectly through a subsidiary.

In November 2016, the Public Investment Fund hired HSBC to advise it on a potential purchase of an increased stake in ACWA. It is not clear whether that purchase might still go ahead.

ACWA said in September it aims to acquire one or two power generation companies owned by Saudi Electricity Co, whose assets are to be privatised.


Reuters

Ticker Price Volume
QNBK 158.20 39,298
SABIC 129.40 4,143,595
UCA 13.98 140,154
TAWUNIYA 67.20 91,592
AAYAN 31.80 4,097,610
FAB 13.15 443,980
ENAYA 28.80 655,947

TASI 8,466.62 16.65 (0.20%)

Market
P/E
Price/BookValue
Dividend Yield (%)
Performance
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Index vs...
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
SABIC 129.40 -0.20 (-0.16%)
STC 87.50 -0.10 (-0.12%)
RJHI 88.90 0.50 (0.56%)
NCB 48.00 -0.05 (-0.11%)
SECO 20.94 -0.08 (-0.39%)
MENA equities continue to outperform global markets

22/07/2018

Most S&P and Dow Jones Shariah-compliant benchmarks outperformed their conventional counterparts in Q2 and through the first half of 2018 as financials – which are largely absent from Islamic indices

Saudi Gazette

MSM30: Recovery in performance, overall good results

22/07/2018

Improvement was seen in trading activities in the past week as value and volume went up by 84.62 per cent and 127.1 per cent. However, the prevailing impression is caution, despite overall good resul

Oman Daily Observer

Boursa Kuwait announces its full membership with FEAS exchanges

22/07/2018

Boursa Kuwait has announced its membership with the Federation of Euro-Asian Stock Exchanges (FEAS), which facilitates its integration with global financial markets and exchanges.

Through

Arab Times

Oman share index ends higher

19/07/2018

The MSM30 index ended higher on Wednesday and closed at 4,457.12 points, up by 0.33 per cent. MSM Sharia Index closed at 633.180 points, up by 0.10 per cent. HSBC Bank Oman was the most active in ter

Times of Oman

ADX sees new listing on second market

19/07/2018

The Abu Dhabi Securities Exchange said on Wednesday that Wahat Al Zaweya Holding listed its shares on the second market, and has commenced trading.

The company’s share capital is Dh2.3 bill

Gulf News