International Company for Water and Power Projects (ACWA Power), a leading developer, investor and operator of power generation and desalinated water plants worldwide, today (September 2) announced its intention to proceed with an Initial Public Offering (IPO) and list its shares on the main market of the Saudi Stock Exchange (Tadawul).

 

 

The final price at which all subscribers in the offering will purchase Shares will be determined at the end of the book-building period, said a statement.

 

Founded in Riyadh in 2004, Acwa Power is a leading private developer, owner and operator of long-term contracted power generation and desalinated water projects worldwide that continuously optimises its portfolio. 

 

Acwa Power today has 64 projects in operation, construction or advanced development in 13 countries across three continents, with a total project cost of SR248 billion ($66 billion).

 

The company’s operational capacity across all markets currently provides 20.3 GW of electricity and 2.8 million cu m per day of desalinated water.

 

Once existing projects under construction and in advanced development are completed and brought into operation within the next four years, the company will double its operational power generation capacity to 41.6 GW and more than double its operational desalinated water production capacity to 6.4 million cu m per day. 

 

As a homegrown company, Acwa Power’s portfolio in Saudi Arabia, including assets currently under construction or in advanced development, represents an estimated 24% of Saudi Arabia’s gross power generation capacity and 49% of the country’s water desalination capacity.

 

With a pioneering mindset and mastery of the most sophisticated technologies, the company is focused on enabling and driving the energy transition through investment expansion in greenfield and/or brownfield projects in renewable energy and green hydrogen.

 

In addition to its existing portfolio of operational, under construction or advanced development assets, the company’s growth opportunities include a short-term pipeline of more than 85 identified projects representing an overall potential capacity of 68 GW of power and 9.5 cu m per day of water from desalination assets coming up for tender or currently under negotiation. 

 

An additional growth driver is the development of 70% of Saudi Arabia’s 2030 renewable energy target of 58.7 GW under the National Renewable Energy Programme, which Acwa Power is developing with the Public Investment Fund (PIF), a majority shareholder in the company, under a strategic framework agreement.

 

Overall, there are future greenfield growth opportunities in the company’s target markets of approximately 385 GW. Considering Acwa Power’s industry-leading average bid-win ratio of 68%, the company believes it is strongly positioned to capture its fair share of these opportunities.

 

Unveiling the IPO plans, Chairman Mohammad A Abunayyan said: "In this increasingly power-deficient and fresh-water constrained world, we are proud to positively impact millions of lives every day by delivering essential power and water. Since Acwa Power’s inception 17 years ago in Saudi Arabia, our mission has been to provide these life-sustaining utilities in a reliable and responsible manner, at low cost. "

 

"Over the past decade, our business model has gone from strength to strength, and today Acwa Power emerges as not only a power generation and desalination champion at home in the kingdom but also as a company enabling and driving the worldwide transition to a greener, cleaner future," he added.

 

“We are deeply honoured that the Public Investment Fund has entrusted us with spearheading the implementation of the National Renewable Energy Programme and proud to be a national champion, making tangible contributions to Vision 2030 initiatives," noted Abunayyan.

 

"Affordable, low-carbon power generation and water desalination is critical for the sustainable development of economies. It is a privilege to be among the leaders in this field, relied upon by governments around the world to provide vital resources to their citizens. We believe the IPO will give new investors a unique opportunity to participate in the exciting opportunities that lie ahead,” he added.

 

CEO Paddy Padmanathan said: "A historic shift towards renewable energy sources is underway. We at Acwa Power are honoured to be at the forefront of this transition, championing a decarbonised and more sustainable future to support economic growth and social prosperity."

 

"For nearly two decades, we have worked to develop our robust business model, which is underpinned by long-term contracts and diversified assets across geographies and technologies. 

 

"Combined with robust strategic partnerships, we are now well-positioned to capture significant opportunities in Saudi Arabia as well as in attractive markets globally, including utility-scale green hydrogen," stated Padmanathan.

 

"Successively breaking the world record for the lowest water and solar tariffs during the last decade, we deliver power and water reliably, responsibly and affordably, and without compromising environmental stewardship, social accountability and good governance, to a rapidly increasing number of people worldwide," he added.-TradeArabia News Service