DUBAI, Sept 2 (Reuters) - Saudi Arabian utility developer ACWA Power on Thursday announced its intention to float on the Riyadh bourse in an initial public offering (IPO) sources have said could raise more than $1 billion. The company, which is half-owned by the kingdom"s sovereign wealth fund, plans to issue 85.3 million shares, representing 11.67% of the company after a capital increase. Just over 81.2 million shares, representing 11.1 percent of the company, will be offered to the public. Around 4.14 million shares, representing 0.57% of the company, will be allocated to certain employees of the company and its subsidiaries as part of its employee IPO grant plan. ACWA Power"s IPO is expected to raise more than $1 billion, valuing the company about $10 billion, two sources have told Reuters, asking not to be named because they are not authorised to speak to the media. A bidding and book building process for institutions will begin on Sept. 15 and end on Sept. 27, ACWA said in a document made public on Thursday. The subscription period for individuals runs from Sept. 29 to Oct. 1. The final share allocations will be made on Oct. 4. About 70% of the IPO proceeds will go towards financing the company"s equity contribution to upcoming projects and the remaining 30% will be used for general corporate purposes, ACWA said. About 160 million riyals ($42.66 million) from the proceeds will be applied to settle all the fees and expenses related to the IPO, including the fees of banks and lawyers. ACWA made a profit of 902.4 million riyals in 2020, up from 880.1 million riyals in 2019 and a loss in 2018 of 898.9 million riyals, according to the prospectus. ACWA Power originally planned an IPO in early 2018 but the plan was delayed by problems with a power plant project in Turkey, a source familiar with the matter told Reuters at the time. ($1 = 3.7504 riyals) Reporting by Hadeel Al Sayegh; editing by Barbara Lewis Our Standards: The Thomson Reuters Trust Principles.