Alkhorayef Water and Power Technologies Co. plans to offer 7.5 million shares, of 30 percent of its capital, in an initial public offering (IPO).
According to the prospectus, the company said it is one of the main actors in the Kingdom's water sector, especially as its main business includes several segments, such as water, wastewater, and integrated water solutions.
In light of the government's strategy to diversify economy and develop the public services, the Kingdom's Vision 2030, the National Transformation Program and National Water Strategy 2030 include clear directives to provide sustainable water resources.
The water strategy targets a sustainable sector to develop and preserve water resources and environment. It also aims to provide safe supply as well as high-quality and efficient services that contribute to the economic and social development.
Alkhorayef confirmed that it is developing water and wastewater systems to preserve the environment, in addition to using technology to reduce energy consumption. The company is also providing topnotch technology solutions for water and wastewater projects, which allows customers to increase production programs and reduce the implementation period within the industry's highest levels.
The average size of the water and wastewater sector and the integrated solutions sector in the Kingdom grew at a compound annual growth rate (CAGR) of 19.9% to reach SAR 20.2 billion from 2015 to 2019.
According to the prospectus, there are four factors that support the development of the water and wastewater sector in the Kingdom, including the economic, financial, demographic, and social factors, in addition to the government initiatives. The Ministry of Environment, Water and Agriculture (MEWA) has developed the National Water Strategy 2030, which is a unified strategic framework of reference for the water and wastewater sector.
The consumption of water in the Kingdom declined at a compound annual rate of 0.7% from 68.1 million cubic meters per day in 2015 to an estimated 66.3 million cubic meters per day in 2019.
However, the Kingdom remains at the top of the highest water-consuming countries in the world, with total per capita consumption of about 716 cubic meters annually, despite the decline in renewable water resources, which prompted the Kingdom to include the "water resources sustainability" among the main challenges in the National Transformation Program to solve the problem of high-water consumption.
The company said the private sector is a main actor in achieving the water and wastewater targets, as it is working as a partner to the government and industrial companies in implementing, operating, and maintaining water infrastructure such as water treatment plants and as well as water and wastewater networks.
The MEWA has developed two programs aimed at privatizing water distribution as well as the production and treatment of wastewater in the Kingdom, as part of the National Water Strategy 2030, Alkhorayef said.