RIYADH: Saudi Arabia's Capital Market Authority said on Wednesday it has approved an initial public offering of an 11.1% stake in ACWA Power.
ACWA Power, which delayed IPO plans in 2018, leads a consortium that will build and operate renewable power-based utilities at Saudi Arabia's flagship Red Sea tourism project.
"The company's prospectus will be published within sufficient time prior to the start of the subscription period," CMA said, adding its approval for ACWA's offering of 81,199,299 shares was valid for six months.
The Public Investment Fund, Saudi Arabia's sovereign wealth fund, said in November it increased its stake in ACWA Power to 50% from 33.6% as part of a move to support the renewable energy sector in Saudi Arabia.
The CMA explained that the approval of the application is valid for a period of 6 months from the date of the Authority's decision, and the approval is considered canceled in the event that the offering and listing of the company's shares are not completed during this period, Saudi Press Agency reported.
* With Reuters