Legal Advisors and Baker McKenzie advise the syndicate of underwriting banks on ACWA Power’s IPO

Legal advisors, Abdulaziz Alajlan & Partners alongside Baker McKenzie, London, have advised the syndicate of 11 underwriting banks on International Company for Power and Water Projects’ (“ACWA Power’s”) USD1.2 billion initial public offering and listing on the Saudi Stock Exchange (Tadawul), with an implied market capitalisation on listing of approximately USD11 billion. The syndicate included Citigroup, J.P. Morgan, Natixis and Riyad Capital as joint coordinators, financial advisors, bookrunners and underwriters. The syndicate further comprised EFG Hermes, Emirates NBD and FAB Capital as joint bookrunners and underwriters, as well as Albilad Capital, Alistithmar Capital, Aljazira Capital and SNB Capital as underwriters. ACWA Power formally announced the IPO on September 2, 2021 and trading in its shares commenced last month.

The IPO was marketed to institutional investors both domestically and internationally pursuant to “Regulation S” and comprised the issue of 81.2 million new shares, representing approximately 11 per cent of ACWA Power’s existing share capital. The final offer price per share was set at USD14.9 (SAR56), which was at the top end of the price range, having attracted high demand from Saudi and international institutions as well as the investing public in the Kingdom. With an intention to use the net proceeds from the offering to further support upcoming projects, the total proceeds raised by ACWA Power were USD1.2 billion, making it the largest IPO in the Kingdom of Saudi Arabia since Saudi Aramco’s IPO in 2019.

Commenting on the deal, Karim Nassar said, “We are very pleased to have had the opportunity to act for the syndicate of underwriting banks on this pre-eminent IPO transaction, which highlights the depth and breadth of our capacity and capability involving our equity capital markets teams across two of our EMEA offices. This IPO will provide ACWA Power with the needed funding to support its growth strategy. It is a manifestation of the continuing strong demand for IPOs from domestic and international investors in the Kingdom.”

George Marshall added, “It was a great honour for Baker McKenzie to be entrusted with such a significant transaction. Advising on this deal enabled us to draw on our deep knowledge and experience in assisting not only investment banks but major industry players in such prominent fund-raising deals. Building on our recent experience of advising on international deals from the Kingdom, we are very pleased to see that the deal has come to fruition through a successful Tadawul listing and international offering.”

The cross-border team was led by George Marshall and Adam Farlow (partners, Baker McKenzie, London) and Robert Eastwood and Karim Nassar (legal advisors, Riyadh). Further support was provided by Charles Farnsworth (of counsel) and Matthew Caulfield (associate) of Baker McKenzie, London, and Lama AlHabib (trainee associate) of Legal Advisors, Riyadh.