Marafiq appoints HSBC, Riyad Capital to manage IPO: report

Saudi Arabia’s Power and Water Utility Co. for Jubail and Yanbu (Marafiq)

Saudi Arabia’s Power and Water Utility Co. for Jubail and Yanbu (Marafiq) selected HSBC Holdings Plc and Riyad Capital to manage its initial public offering (IPO), Bloomberg reported, citing sources familiar with the matter.

The utility firm seeks to raise $1.2 billion (SAR 4.5 billion) through selling a 30% stake in the second half of 2022, the sources said.

The company was established, as per the Royal Decree issued in October 2000, as a joint stock company owned by four main shareholders, Saudi Aramco, the Royal Commission for Jubail and Yanbu, Saudi Basic Industries Corp. (SABIC) and the Public Investment Fund (PIF). Each shareholder has a 24.81% stake, while investors from the private sector own 0.76%, according to data available with Argaam.

Marafiq started operations in January 2003, with SAR 2.5 billion in capital. It provides energy for Jubail and Yanbu, as well as for oil and petrochemical facilities owned by companies such as Aramco and SABIC.

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