Saudi ACWA Power said to plan IPO in late 2018

Saudi Arabia-based power and water project developer ACWA Power may offer shares in an initial public offering (IPO) in late 2018, Reuters reported, citing chief executive, Paddy Padmanathan.

The share listing will be on the Saudi stock exchange (Tadawul) in addition to another big foreign market that may be Shanghai, or London, or New York.

"We are a growing business, we are a capital-consuming business, and we will be looking to have a broader platform of shareholders," Padmanathan added.

When contacted by Argaam, an ACWA spokesperson said the timing of an IPO is subject to several factors, including regulatory approvals.

“As such, the company cannot make any formal comment till nearer the time of such an IPO being launched and even then the timing and content of such a comment will need to be in strict conformity with regulatory and compliance requirements,” the spokesperson added.

ACWA plans to consider bidding for many assets offered by the Saudi government's privatization scheme, which could help make Saudi Arabia the company's largest market for renewable energy by 2030, Padmanathan said, adding that its biggest renewable energy market is currently Morocco.

The firm expects to bid for a 300 MW solar plant worth around $600 million in August, and a 400 MW wind plant worth around $700 million at the end of the year.

ACWA, which this month raised $814 million with a debut bond issue, plans to raise more debt later this year-- and perhaps in early 2018--depending on its investment needs, Padmanathan said.

The company operates in 11 countries across the Middle East, Africa and Southeast Asia.

It is owned by a number of international and Saudi conglomerates as well as by Sanabil Direct Investment Co, which in turn is owned by Saudi Arabia’s Public Investment Fund and Public Pension Agency.