Saudi's ACWA Power jumps 30% on stock market debut

FILE PHOTO: Saudi woman walks at the Saudi stock market (Tadawul), in Riyadh, Saudi Arabia March 9, 2020. REUTERS/Ahmed Yosri//File Photo

DUBAI (Reuters) -Shares in Saudi Arabian renewable energy utility ACWA Power International jumped 30% on their market debut on Monday after a $1.2 billion IPO, the kingdom’s biggest since Saudi Aramco’s massive public offering in 2019.

ACWA’s shares rose to 72.80 Saudi riyals ($19.41) in early trading, compared with the price at its initial public offering (IPO) of 56 riyals a share.

ACWA, which builds, operates and invests in renewable energy plants, priced its IPO at the top of the range last month, successfully raising $1.2 billion from investors, the biggest since but dwarfed by Saudi Aramco’s $29.4 billion IPO.

Saudi Arabia’s stock market has risen by more than 33% this year, helped by higher oil prices and an economic recovery from last year’s COVID-19 linked contraction.

A slew of listings are expected to come to Riyadh’s bourse over the next 12 months, including the stock exchange Tadawul itself, and the specialty chemicals business of Saudi Basic Industries Corp..

Saudi Arabia’s Capital Markets Authority said in September that around 45 companies were waiting for approval to list.

($1 = 3.7503 riyals)

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