Saudi Arabia’s ACWA Power International, one of the Kingdom’s main vehicles for building renewable energy projects, has set the offer price for its IPO at the top of a range, Bloomberg reports.
According to that report, ACWA Power International will sell shares at 56 riyals ($14.93) apiece after the institutional part of the offering ended, and will raise $1.2 billion for ACWA and value the company at $10.9 billion.
ACWA Power International will be 44% owned by Saudi Arabia’s sovereign wealth fund, the PIF.
Meanwhile, after the IPO, the company is leaving the door open to sell green bonds to further fund ambitious renewable projects in Saudi Arabia, according to a report in renewablesnow.com. The company is “is considering selling green bonds in order to raise funds for some renewable energy projects requiring investments of roughly $10 billion,” according to that report, with the company issuing green bonds in 2022 and beyond.
ACWA’s IPO is the biggest offering in Riyadh since Saudi Aramco’s listing in 2019.
ACWA Power has 20.3 GW of electricity generating capacity and aims to double that to 41.6 GW within the next four years. The share of renewable energy in its total gross power capacity currently amounts to 33%.
Renewable energy is increasingly in focus in Saudi Arabia as the Kingdom looks to be a global leader in cutting carbon emissions. The Kingdom recently announced that it is aiming to generate 50% of its energy from renewable sources by 2030 and plant as many as 10 billion trees. ACWA Power International is a key piece in the Kingdom’s overall renewable energy goals.
