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Saudi Arabia’s Power and Water Utility Co. has hired Jubail and Yanbu HSBC Holdings plc and Riyadh Capital to handle its initial public offering, according to people familiar with the matter, the state’s ambitious privatization program is rapidly gathering momentum.
The company sought to raise 1. 1.2 billion by selling 30% of its shares in the second half of the year, with people saying the information was private and requested not to be identified. Its shareholders include Public Investment Fund, Saudi Arabian Oil Co. and Saudi Basic Industries Corporation.
The utility, known as Marafic, first came up with the idea of an IPO in 2017 and hired GIB Capital to advise on a potential list and power-plant acquisition. The most recent effort comes when the state discontinued its share of state resources, including Saudi Aramco, to diversify its oil-dominated economy. The government has also sold shares of stock exchanges and flour mills.
Representatives from Marafic, HSBC and Riyadh Capital did not immediately respond to requests for comment.
According to its website, Marafik is the main electricity supplier for the industrial cities of Jubail and Yanbu. It provides energy for oil and petrochemical facilities owned by companies including Aramco and Savik.
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