Aquapower begins raising $ 1.2 billion, the second largest IPO in Saudi Arabia after Aramco

ACWA Power International, which specializes in building renewable energy projects, is set to raise up to 4.55 billion riyals ($ 1.2 billion) in what would be the largest initial public offering in Saudi Arabia from the listing of the oil giant Aramco.

The society, in to which the Public Investment Fund contributes a 50% stake, has set the price range for the offer between SAR 51 and SAR 56 per share, and the company is expected to sell 81.2 million shares, or a share of the 11.1%, raise funds for its conversion in a low-carbon energy product.

While the upper end of the offering’s price range indicates that AquaPower is worth approximately $ 11 billion.

The company’s capital after the offer amounted to 731 million and 99 thousand and 729 shares, which brings the value of the company between 37.3 billion riyals (9.9 billion dollars) and 40.9 billion riyals (10, $ 9 billion), according to Al Arabiya’s .

Institutional subscriptions for ACWA Power’s public offering began today and will end on Monday 27 September 2021 and individual subscriptions will begin on 29 September.

After the completion of the institutional underwriting and book process building, the final offer price of the company’s shares will be determined, within the price range set by the company between 51 and 56 riyals per share.

The minimum number of shares offered that can be subscribed for the participating classes (institutions) is 100,000 shares, while the maximum number is 36,544,986 shares.

Participation in the order book building it is limited to the categories authorized to participate in the order book process building according to the instructions in book building and allotment of shares in initial subscription issued by the Board of the Capital Market Authority.

The number of shares in offering that will initially be awarded to the participating classes is 81,199,299 shares in offer, representing 100% of the total shares in offer, provided that the final allotment occurs after the end of the individual subscription period.

In case in to which the individual subscribers subscribe all the shares in offer allotted to them, the subscription register managers have the right to reduce the number of shares assigned to the participating classes to 73,079,370 shares in offer – at least – representing 90% of the total offer of shares.

Aquapower has selected JPMorgan, Citigroup, Riyad Capital and Natixis as financial advisors for the offer.

This comes as the largest offering on the Saudi stock exchange after the Saudi government sold 2% of Aramco in its public offering in 2019 and raised nearly $ 30 billion, which is the largest global number of any offering in history. .

Last week, ACWA Power CEO Paddy Padmanathan said in an interview with Bloomberg TV that the company will double the amount of energy generated over the next five years, mainly from renewables, in a global context of moving away from the combustion of fossil fuels.

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