Saudi Arabia’s Capital Market Authority approved an application by ACWA Power, the kingdom’s renewable energy leader, to sell an 11.1% stake in an initial public offering.
ACWA Power, also known as International Co. for Water and Power Projects, will offer 81.2 million shares in the IPO, the market authority said in a statement Wednesday. The regulatory approval is valid for six months.
The kingdom’s sovereign wealth fund holds a 50% stake in the company, which is at the forefront of Crown Prince Mohammed bin Salman’s plans to turn the world’s largest crude exporter into a renewable energy powerhouse. ACWA Power is involved in building a $5 billion green hydrogen plant at the prince’s flagship megaproject, a futuristic city-from-scratch called Neom.
While Saudi Arabia produces one-eighth of the world’s oil supply, its operational renewable energy capacity is small by regional standards.
Riyadh has been the hottest market for IPOs in the Middle East over the past two years, with new offerings oversubscribed, mostly by local retail and institutional investors. In 2019, the bourse hosted the $29 billion offering of the world’s biggest oil producer, Saudi Aramco, with shares being sold mostly to Saudi investors seeking guaranteed dividends.