ACWA Power International increased its Initial Public Offering in Riyadh after accumulating over USD 1.2 billion in the most voluminous Saudi Arabian listing since Aramco.
ACWA Power International’s illustrious debut in Riyadh
The stock price surged by the 30% everyday limit to SAR 2.80 (USD 0.75) on 11th October as investors congregated to a business that was viewed as essential to Saudi’s exertions to diversify from oil. ACWA Power is a chief player that facilitates a transition to greener energy by fabricating renewable electricity and hydrogen. The shares offered by ACWA Power were valued at SAR 56 (USD 14.93) each.
The offering illustrated over USD 300 billion in orders. This meant that the provisions made to investors were intensely limited. ACWA Power is now worth USD 14.2 billion. It is one of the largest listed firms in Riyadh.
Head of Nomura Asset Management’s Middle East wing, Tarek Fadlallah, stated in an interview with Bloomberg Television that the success story of ACWA Power is one that restructured the power industry in Saudi Arabia. He stated that the firm held stocks that were not so modest in their value.
The Saudi Arabian government has stated that ACWA Power will support and aid in developing 70% of the renewable energy projects in Saudi Arabia. ACWA Power is part of a conglomerate that develops a USD 5 million plant that will export green hydrogen from NEOM. The fuel is dubbed to be procured from wind and solar power.
The IPO arrives amidst an increase in Saudi stocks when the main exchange in Riyadh surged to 33%. The Kingdom of Saudi Arabia’s economy and markets have seen a jump up owing to a boost in oil prices that have surged over 60% this year. This boost in oil prices facilitates the global economic recuperation from the COVID19 pandemic.
Saudi Telecom Company’s internet services wing also increased by the maximum limit permitted on its trading debut after retrieving USD 126 billion in orders for its Initial Public Offering in September 2021.