Biggest Saudi IPO since Aramco set for Riyadh trading debut

ACWA Power International, Saudi Arabia’s first $1bn initial public offering since Aramco, is set to start trading in Riyadh on Monday.

The $1.2bn IPO drew interest from investors looking for exposure to a business seen as key to the kingdom’s plans to diversify its economy away from oil.

Initial demand amounted to several billion dollars and advisers had to limit institutional investors’ allocations.

Riyadh-based ACWA, half-owned by the kingdom’s sovereign wealth fund PIF, is selling an 11.1 per cent stake at SAR56 ($14.93) apiece, the top end of the offer range. The company will be valued at $10.9bn and the PIF will continue to own a 44 per cent stake after the IPO.