Investment bankers devoted two weeks to attracting interest in Saudi Arabia's first multi-billion-dollar initial public offering since Aramco. They only needed hours before they were inundated with requests. Aquapower's $1.2 billion offering, which is set to price later this month, is attracting significant interest from investors looking to get in on companies seen as key to the kingdom's plans to diversify its economy away from oil.
The initial demand for the listing has reached several billion dollars as advisers are forced to restrict allocations to institutional investors, Bloomberg reported, citing sources with direct knowledge of the deal.
Bloomberg cited sources with direct knowledge of the deal. While Aramco's record IPO in 2019 gave investors access to the Saudi oil sector, Aquapower gives access to renewable and hydrogen energy projects that the kingdom has in its future plans.
While Aramco's record IPO in 2019 gave investors access to the Saudi oil sector, Aquapower gives access to renewable and hydrogen energy projects that the kingdom has in its future plans. Aquapower, half-owned by the Saudi Public Investment Fund, is expected to deliver at least 70% of renewable energy projects in the Kingdom by 2030 and expects to achieve its net-zero emissions target ahead of the current 2050 target.
While the record IPO in 2019 allowed Saudi oil investors to enter, Aquapower gives access to the renewable and hydrogen energy projects that the Kingdom is putting in place for the future.
Naveed Naz, Controller of Aljamaz Group, a Riyadh-based family business operating in the agriculture and technology sectors that participated in the bidding process, said: “The IPO is expected to be oversubscribed.”
Naveed Naz, controller of Aljamaz Group, a Riyadh-based family business that participated in the bidding process, said. “We expect the company to be able to deliver on its growth plans and triple in size within the next 7 to 10 years,” he added, as quoted by the agency.
Navid Naz, controller of Al Jammaz Group, a Riyadh-based family business operating in the agriculture and technology sectors that participated in the bidding process, said. Thamer Al Saeed, chief investment officer at Mada Investment Company, said: “The company will be significantly oversubscribed due to the nature of the offer, which is based on a capital increase and not an exit or sale.”
For his part, Thamer Al Saeed, chief investment officer at Mada Investment Company, said: “The company will be significantly oversubscribed. <The offer comes at a time when Saudi companies backed by Saudi Arabia's $430 billion 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 paved the way for more Saudi companies toward capital markets. The kingdom also plans to dominate the $700 billion hydrogen market, building a $5 billion facility powered entirely by solar and wind that will be among the world's largest producers of green hydrogen when it opens in the mega-city of Neom planned for 2025, as part of its first steps to create a global hydrogen market, with Aquapower as a partner in the project.
Aquapower is also a partner in the project.
