RIYADH: ACWA Power International, Saudi Arabia’s first US$1bil (RM4.18bil) initial public offering (IPO) since Aramco, is set to start trading in Riyadh today.

       The US$1.2bil (RM5.01bil) IPO drew interest from investors looking for exposure to a business seen as key to the kingdom’s plans to diversify its economy away from oil.

       Initial demand amounted to several billion dollars and advisers had to limit institutional investors’ allocations.

       Riyadh-based ACWA, half-owned by the kingdom’s sovereign wealth fund Public Investment Fund or PIF, is selling an 11.1% stake at 56 riyals (US$14.93 or RM62.38) apiece, the top end of the offer range.

       The company will be valued at US$10.9bil (RM45.54bil) and the PIF will continue to own a 44% stake after the IPO.

       ACWA Power is a developer, investor, co-owner and operator of a portfolio of power generation, renewable energy and desalinated water production plants. ― Bloomberg