Saudi Arabia's Acwa Power said to delay planned 2018 IPO
The company planned to sell up to 30% stake by the end of this year, but the IPO has been held off according to news reports
Acwa Power has reportedly stalled plans for the launch of its initial public offering (IPO), a source close to the matter told Reuters.
The report, published on the weekend, said the developer of power and water desalination plants had hoped to get its IPO off the ground in 2018.
A representative from Acwa Power declined to comment on the news when contacted by Construction Week.
Reuters said Acwa Power had planned to sell up to 30% stake by the close of 2018, and that JP Morgan, Citigroup, Natixis, and Riyad Capital had been hired to advise the company on the process.
However, sources told the news agency that the plan could be shelved for at least 12 months, citing problems with an Acwa Power project in Turkey as one of the reasons behind the reported IPO delay.
Acwa's Power's Turkey projects include the $1bn (AED3.6bn; SAR3.7bn) Kirikkale Power Plant, which was was inaugurated in November 2017 and is capable of meeting up to 3% of electricity demand in the country.
Meanwhile, Saudi Arabia's Public Investment Fund (PIF) acquired a 15.2% stake in Acwa Power in July 2018. At the time, Acwa Power said it expected the additional capital to support its growth and investment targets.
Separately, Acwa Power has entered into joint venture with Saudi Aramco and Air Products, an agreement that will see the trio of firms create a company that will buy gasification assets, power blocks, and associated utilities from Aramco for a fee of approximately $8bn (SAR30bn).