The largest Saudi IPO since Aramco creates intense competition among investors


Investment bankers have set aside two weeks to garner interest in Saudi Arabia’s first billion-dollar initial public offering (IPO) since offering a stake in Aramco. They only needed hours before requests rained down on them.

attract أكواباور With a value of $1.2 billion, which is set to be priced later this month, investors are looking to get into companies seen as key to the kingdom’s plans to diversify its economy away from oil.

Initial demand for the listing reached several billion dollars, as advisors are forced to restrict allocations to institutional investors, according to Bloomberg, citing sources with direct knowledge of the deal.

While Aramco’s record-breaking IPO in 2019 allowed investors to enter the Saudi oil sector, ACWA Power gives access to renewable energy and hydrogen energy projects that the kingdom is putting into its future plans.

AquaPower, which is half owned by the Saudi Public Investment Fund, is expected to provide at least 70 percent of renewable energy projects in the kingdom by 2030, and expects to meet its net-zero emissions target before the current 2050 target.

“The IPO is expected to witness a high turnout,” said Naveed Naz, the financial controller of the “Al-Jamaz” group, a family-owned company operating in the agricultural and technology sectors based in Riyadh, which participated in the bidding process.

“We expect the company to be able to present its growth plans and triple in size within the next 7 to 10 years,” he added.

For his part, Thamer Al-Saeed, chief investment officer at Mada Investment Company, said: “The company’s subscription ceiling will be greatly exceeded due to the nature of the offer, which depends on increasing the capital and not exiting or selling.”

The offer comes as Saudi companies backed by the $430 billion Saudi Public Investment Fund are taking the lead in new offerings on the Middle East’s largest stock exchange. Aramco’s record IPO, which raised about $30 billion in 2019, has cleared the way for more Saudi companies to enter the capital markets.

The Kingdom also plans to control the hydrogen market, which is worth 700 billion dollars, as it is building a facility worth 5 billion dollars that will be fully powered by solar and wind energy, and it will be among the largest producers of green hydrogen in the world, when it opens in the mega city of NEOM and is planned in 2025. As part of its first steps to create a global hydrogen market, Aquapower is a partner in the project.


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