* Share price surge continues trend among Saudi IPOs
* ACWA builds, operates renewable energy plants
* IPO reduces sovereign wealth fund PIF's stake to 44%
* A raft of IPOs expected on Riyadh bourse in next 12 months
DUBAI, Oct 11 (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.
Shares in ACWA, which is partly owned by the Saudi sovereign
wealth fund PIF, rose to 72.80 Saudi riyals ($19.41) in early
trading, up from their initial public offering price of 56
riyals a share.
ACWA builds, operates and invests in renewable energy plants
and becomes the only renewables company listed in Saudi Arabia.
It 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.
The surge in ACWA's share price on its debut continued a
trend seen in IPOs in Saudi Arabia, which are being
oversubscribed from 50 to 200 times, said Mohammed Ali Yasin,
chief strategy officer at Al Dhabi Capital.
"The appetite for participating in the IPOs and the book
building process is big. That pushes huge amounts to be
subscribed, which results in lower allocations, which means
people need to come back to the market to build their
positions," Yasin said.
ACWA sold 11.1% of its existing shares in the IPO, reducing
Public Investment Fund's (PIF) stake to 44%.
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
Saudi Arabia's Capital Markets Authority said in September
that around 45 companies were waiting for approval to list.
ACWA, in addition to the initial public offering, has said
it will allocate about 4.14 million shares, representing 0.57%
of the company, to certain employees of the company and its
subsidiaries as part of its employee IPO grant plan.
($1 = 3.7503 riyals)
(Reporting by Hadeel Al Sayegh; Editing by Edmund Blair and