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By Hadeel Al Sayegh and Tom Arnold
DUBAI (Reuters) - Saudi Arabia's ACWA Power has invited banks to bid to arrange an initial public offer of its shares, which is expected to value the company at up to $1 billion, sources told Reuters on Wednesday.
ACWA Power, a developer of electricity and water projects in the Middle East, Africa 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 power industry, particularly renewable energy. 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 could be valued between $800 million and $1 billion, while another estimated 3.5 billion riyals ($933 million) to 4 billion riyals.
Saudi Arabia aims to produce 10 percent of its power from renewable sources in the next six years as it pushes ahead with a multi-billion-dollar plan to diversify its energy mix and free up more crude oil for export.
According to its own figures, ACWA Power's portfolio generates more than 22 gigawatts of power, with investments valued at over $30 billion.
ACWA 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.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)