Alkhorayef Water and Power Technologies’ IPO to boost operational growth: Chairman

Mohammed Alkhorayef, Chairman of Alkhorayef Water and Power Technologies

Alkhorayef Water and Power Technologies Co.’s initial public offering (IPO) is planned to achieve Alkhorayef Group’s sustainability and growth objectives, Mohammed Alkhorayef, Chairman of the utility unit, told Argaam in an exclusive.

The company is Alkhorayef Group’s one of the largest subsidiaries, as it operates in a vital sector that receives great government support, in order to improve water and sewage services for all nationals and residents across the Kingdom.

Alkhorayef Water and Power Technologies is well-positioned for a partial offering, as the Group will retain a considerable stake in the company, the Chairman said.

The water utility's operations are concentrated in a large number of cities across the Kingdom, fulfilling the sector’s value chain needs. The utility provider operates in three key sectors, namely water - including processing and networks; sewage - including processing and networks; as well as integrated water solutions through engineering, construction, operation and maintenance, and supply.

The company is the Kingdom’s market leader in terms of the operation and maintenance of water and sewage networks. It dominates over 25% market share in the operation and maintenance market. The utility provider is also a leader in the engineering, construction, operation and maintenance of water and wastewater plants and networks.

The company’s clients include Ministry of Environment, Water and Agriculture; National Water Co. (NWC); Saudi Electricity Co. (SEC); MODON; Saudi Arabian Mining Co. (Maaden); and Royal Commission for Jubail and Yanbu (RCJY), etc.

The chairman also affirmed that the company’s operations were not hit by the COVID-19 lockdown, thanks to its efficient management and vital operations. It also posted an over 20% annual profit growth this year.

The utility’s strategic objectives focus on enhancing its presence in the core business activities and its leading position in the operation and maintenance sector. Alkhorayef Water and Power also aims to expand in the infrastructure market and privatization projects, in line with the Kingdom’s focus on encouraging the private sector participation to attract foreign and domestic investments.

“Alkhorayef Water and Power Technologies entered into several alliances with renowned foreign companies, mainly Veolia, to win the water systems privatization projects in cities,” the top official added.

The company also prequalified for NWC’s privatization program - a milestone in its track record - which affirms its ability to compete for various projects without partnerships with foreign players.

Alkhorayef Group’s water unit seeks to enhance its competitive position and grow its market share in the Kingdom, focusing on the application of advanced technology, digital solutions and renewable energy to water and power, Alkhorayef said.

The company is mulling expansions outside the Kingdom, especially in the neighboring countries, driven by their need to expand in infrastructure services, the Chairman concluded.

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