Saudi Arabia headquartered ACWA Powercould go public within the next two years, according to its CEO and President Paddy Padmanathan.
ACWA, which has garnered a reputation for building renewable energy projects at record low prices, is looking for an initial public offering (IPO) as soon as possible, Padmanathan said in an interview at the Abu Dhabi Sustainability Week conference last week.
“I hope (it will happen) within two years. If it was this year, it would be wonderful. We’re not the ones holding back,” he said in an interview with Arab News.
“We are very keen to bring the public in as shareholders. Power and water are basic ingredients to life and we are a very significant provider in many of the countries where we operate. It’s very important that the public at large have the opportunity to join us and share in the ownership of assets that are so important to them.
“Also, we are in a very capital-intensive business, so we need to attract a wider pool of capital that we can deploy.”
Until now, he added, the company was not in a position to launch an IPO because investors require regular dividends and in recent years ACWA has been spending a lot of money building projects but not earning much revenue. Now those projects are generating power and earning income.
“We needed to get to the point where we had stable revenues and a stable platform that can steadily generate power and income. We are confident that we are there now,” Padmanathan said.
“We’ve started work on an IPO, but for me to predict the exact timing would be unreasonable. It’s not in my hands but we are looking forward to getting there sooner rather than later.”
An IPO would herald the next stage for the company that burst on to the renewables market by winning a tender to provide a concentrated solar power plant in Morocco in 2011, reported Arab News.