Saudi power firm Marafiq said to be planning IPO

Saudi Arabia’s Power and Water Company for Jubail and Yanbu (Marafiq) is studying plans for an initial public offering (IPO), Bloomberg reported on Wednesday, citing unnamed people familiar with the matter.

Marafiq plans to list on the Saudi Stock Exchange (Tadawul), and the sale will not happen before 2019, the people said.

The company has not decided on the size of the stake to be sold, or how much it is looking to raise from the IPO, they added.

Marafiq is currently seeking a financial adviser for its plans to acquire power plants in Saudi Arabia. The company is expected to use the same adviser to help it prepare for the IPO, the people said.

The utility firm’s shareholders include the Public Investment Fund (PIF), Saudi Arabian Oil Co. (Saudi Aramco) and Saudi Basic Industries Corp. (SABIC).

The company is the main power provider for Jubail and Yanbu, according to its website. It also supplies energy for oil and petrochemical facilities owned by companies such as Aramco and SABIC.