RIYADH, KINGDOM OF SAUDI ARABIA: International Company for Power and Water Projects (ACWA Power) announced intention to proceed with an Initial Public Offering (IPO) and list its shares on the Main Market of the Saudi Stock Exchange (Tadawul).
ACWA Power is a leading developer, investor and operator of power generation and desalinated water plants worldwide.
The Capital Market Authority (CMA) on 30 June 2021 approved the Company’s application for the IPO on Saudi Stock Exchange of 81.199 million new ordinary shares, representing 11.1 per cent of ACWA’s enlarged share capital.
The final price at which all subscribers in the Offering will purchase Shares will be determined at the end of the book-building period.
Founded in Riyadh in 2004, ACWA Power is a leading private developer, owner and operator of long-term contracted power generation and desalinated water projects worldwide that continuously optimizes its portfolio.
ACWA Power today has 64 projects in operation, construction or advanced development in 13 countries across three continents, with a total project cost of SAR 248 billion (USD 66 billion).
The Company’s operational capacity across all markets currently provides 20.3 GW of electricity and 2.8 million m3 per day of desalinated water.
Once existing projects under construction and in advanced development are completed and brought into operation within the next four years, the Company will double its operational power generation capacity to 41.6 GW and more than double its operational desalinated water production capacity to 6.4 million m3 per day.
As a homegrown company, ACWA Power’s portfolio in the Kingdom of Saudi Arabia, including assets currently under construction or in advanced development, represents an estimated 24% of Saudi Arabia’s gross power generation capacity and 49% of the country’s water desalination capacity.
With a pioneering mindset and mastery of the most sophisticated technologies, the Company is focused on enabling and driving the energy transition through investment expansion in greenfield and/or brownfield projects in renewable energy and green hydrogen.
In addition to its existing portfolio of operational, under construction or advanced development assets, the Company’s growth opportunities include a short-term pipeline of more than 85 identified projects representing an overall potential capacity of 68 GW of power and 9.5 m3 per day of water from desalination assets coming up for tender or currently under negotiation.
An additional growth driver is the development of 70% of Saudi Arabia’s 2030 renewable energy target of 58.7 GW under the National Renewable Energy Programme, which ACWA Power is developing with the Public Investment Fund (PIF), a majority shareholder in the Company, under a strategic framework agreement.
Overall, there are future greenfield growth opportunities in the Company’s target markets of approximately 385 GW.
Considering ACWA Power’s industry-leading average bid-win ratio of 68%, the Company believes it is strongly positioned to capture its fair share of these opportunities.
Mohammad A. Abunayyan, Chairman of the Board of Directors, ACWA Power, said: “In this increasingly power-deficient and fresh-water constrained world, we are proud to positively impact millions of lives every day by delivering essential power and water.
Since ACWA Power’s inception 17 years ago in Saudi Arabia, our mission has been to provide these life-sustaining utilities in a reliable and responsible manner, at low cost. Over the past decade, our business model has gone from strength to strength, and today ACWA Power emerges as not only a power generation and desalination champion at home in the Kingdom but also as a company enabling and driving the worldwide transition to a greener, cleaner future.”
He added: “We are deeply honoured that the Public Investment Fund has entrusted us with spearheading the implementation of the National Renewable Energy Programme and proud to be a national champion, making tangible contributions to Vision 2030 initiatives.
Affordable, low-carbon power generation and water desalination is critical for the sustainable development of economies. It is a privilege to be among the leaders in this field, relied upon by governments around the world to provide vital resources to their citizens.
We believe the IPO will give new investors a unique opportunity to participate in the exciting opportunities that lie ahead.”
Paddy Padmanathan, Chief Executive Officer, ACWA Power, said: “A historic shift towards renewable energy sources is underway. We at ACWA Power are honoured to be at the forefront of this transition, championing a decarbonised and more sustainable future to support economic growth and social prosperity”.
ACWA Power IPO on Saudi Stock Exchange.