Saudi Ara­bia’s ACWA Power de­lays IPO

ACWA Power had been plan­ning to sell a 30% stake in an IPO by year end

Utilities Middle East - - NEWS -

Saudi Ara­bian util­ity de­vel­oper ACWA Power IPO-ACPO.SE has de­layed plans for an ini­tial pub­lic of­fer­ing (IPO), orig­i­nally en­vis­aged for this year, sources fa­mil­iar with the mat­ter said last month.

It is the lat­est com­pany to de­lay a pub­lic list­ing in Saudi Ara­bia at a time when the gov­ern­ment is fo­cused on at­tract­ing more in­vest­ment to the stock mar­ket un­der its push to move the econ­omy away from a de­pen­dence on oil rev­enues.

A spokesman for ACWA Power de­clined to com­ment. The com­pany has $30bn of as­sets un­der man­age­ment and counts Saudi sov­er­eign wealth fund Pub­lic In­vest­ment Fund as a share­holder.

ACWA Power, which de­vel­one ops power and de­sali­nated wa­ter plants, had been plan­ning to sell a 30% stake in an IPO in Riyadh by the end of the year. It hired JP Mor­gan, Cit­i­group, Natixis and Riyad Cap­i­tal to ad­vise on that process.

But sources now say the trans­ac­tion will not hap­pen this year, with say­ing the IPO will be de­layed for at least a year. Prob­lems re­lat­ing to an ACWA Power project in Turkey were one rea­son for the de­lay, one of the sources said.

Sev­eral other Saudi com­pa­nies have de­layed their IPO plans in the past year.

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