Acwa prepares for initial public offering in late 2014

03 October 2013

Saudi power developer also planning sukuk issue before end of 2013

Saudi Arabia’s Acwa Power is planning to launch an initial public offering (IPO) on the Saudi Stock Exchange (Tadawul) in late 2014 as part of expansion plans.

Netherlands-based accountancy firm KPMG has completed a readiness assessment for the IPO, and Acwa is planning to offer the first shares on the market before the end of 2014, according to the firm’s chief executive officer (CEO) Paddy Padmanathan.

Before the flotation occurs, the power developer is looking to raise about $800m from an international sukuk (Islamic bond) issue, which will be its debut issue. Padmanathan says Acwa is planning to issue the sukuk before the end of this year. The company completed its maiden corporate loan in November 2011, when it raised $300m from international banks.

In January this year, two Saudi government-owned funds bought an equity stake totalling almost 20 per cent in Acwa Power.

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