Saudi Arabia’s ACWA Power delays IPO
ACWA Power had been planning to sell a 30% stake in an IPO by year end
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.