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Corrected: Exclusive - Saudi Arabia's ACWA Power invites banks to arrange IPO - sources


(Corrects monetary size of IPO, adds company statement)

By Hadeel Al Sayegh and Tom Arnold

(Reuters) - Saudi Arabia's has invited banks to bid to arrange an initial public offer of its shares, which is expected to raise up to $1 billion, sources told on Wednesday.

Power, a developer of and water projects in the Middle East, and southeast Asia, sent a request for proposals to banks last week, the sources said, declining to be named because of the commercial sensitivity of the matter.

The company did not immediately respond to a request for comment.

The firm could become one of the main beneficiaries of Saudi Arabia's effort to develop its industry, particularly It is looking to sell a 30 percent stake to investors and list in Riyadh, two banking sources said.

One of the sources said the company was looking to raise between $800 million and $1 billion, while another estimated it would raise 3.5 billion riyals ($933 million) to 4 billion riyals.

The company said in statement to Reuters: "has consistently maintained that as its operating platform grows sufficiently to generate a stable and predictable revenue stream, the ownership of the company should be broadened to include the public.

"We will make announcements on this subject as and when we have something meaningful to say."

aims to produce 10 percent of its from renewable sources in the next six years as it pushes ahead with a multi-billion-dollar plan to diversify its and free up more for export.

According to its own figures, Power's portfolio generates more than 22 gigawatts of power, with investments valued at over $30 billion.

has close relations with the Saudi government, with the country's top sovereign wealth fund, the Public Investment Fund, owning 13.7 percent indirectly through a subsidiary.

In November 2016, hired to advise it on a potential purchase of an increased stake in It is not clear whether that purchase might still go ahead.

said in September it aims to acquire one or two generation companies owned by Saudi Co, whose assets are to be privatised.

(Additional reporting by Nawied Jabarkhyl, and Reem Shamseddine; Editing by and David Evans)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 11 2018. 12:56 IST