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Saudi CMA Approves ACWA Power IPO

Saudi CMA Approves ACWA Power IPO

Thursday, 1 July, 2021 - 10:15
ACWA Power (Asharq Al-Awsat)

The Saudi Capital Market Authority (CMA) approved the request of the International Company for Water and Power Projects (ACWA POWER) application for public offering of 81.2 million shares, representing 11.1 percent of its share capital.


The Company’s prospectus will be published within sufficient time prior to the start of the subscription period.


The investment value of the company's portfolio exceeds $66.1 billion, producing 42 gigawatts (GW) of electricity and 6.4 million cubic meters of desalinated water per day, provided as a huge production that meets the needs of state utilities, and according to long purchase contracts.


ACWA Power, through its projects, aims to produce reliable electricity and desalinated water at low cost, while contributing effectively to the sustainable social and economic development of societies and countries.


The company successfully raised $746 million, through a senior, unsecured floating Sukuk rate issuance with a seven-year tenor, under the Shariah-compliant Mudaraba-Murabaha structure.


The issuance marked the company’s maiden entry into Saudi debt capital markets and saw significant interest from fund managers, government funds, and insurance companies accounting for approximately 30 percent of the issuance and resulting in an oversubscription of 1.8 times over the issue size.


ACWA Power was established in 2004 in Saudi Arabia and is 50 percent owned by the Public Investment Fund (PIF). PIF increased in November its stake in ACWA Power from 33.6 percent as part of a move to support the renewable energy sector in Saudi Arabia.


It is a developer, investor, and operator of a group of power generation and water desalination plants, and its portfolio currently includes 64 plants that are in operation, construction, or in advanced stages of development.


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