Saudi Arabian utility developer ACWA Power announced its intention to float on the Riyadh bourse in an initial public offering (IPO) sources have said could raise more than $1 billion.
The company, which is half-owned by the kingdom’s sovereign wealth fund, plans to issue 85.3 million shares, representing 11.67 percent of the company after a capital increase.
Just over 81.2 million shares, representing 11.1 percent of the company, will be offered to the public.
Around 4.14 million shares, representing 0.57 percent of the company, will be allocated to certain employees of the company and its subsidiaries as part of the employee IPO grant plan.
ACWA Power’s IPO is expected to raise more than $1 billion, valuing the company about $10 billion, two sources have told Reuters on condition of anonymity, asking not to be named because they are not authorized to speak to the media.
ACWA Power originally planned an IPO in early 2018 but the plan was delayed by problems with a power plant project in Turkey, a source familiar with the matter told Reuters at the time.