Company plans to issue 85.3 million shares, representing 11.67 percent of the company after a capital increase RIYADH: Saudi Arabian utility developer ACWA Power on Thursday made an announcement on the Tadawul stock exchange that it intends to proceed with its plan to float on the Riyadh bourse. Riyad Capital, Citigroup Saudi Arabia, J.P. Morgan Saudi Arabia Company and Natixis Saudi Arabia Investment Company will act as financial advisors, book-runners, and underwriters on the potential initial public offering, ACWA said in a statement on the Tadawul. ad The company, 50 percent owned by the Kingdom"s Public Investment Fund (PIF), plans to issue 81,199,299 new ordinary shares, representing 11.1 percent of the company’s enlarged share capital. 4,137,552 shares, representing 0.57 percent of the company’s share capital after the capital increase, will be awarded to certain employees of the company and its subsidiaries. Substantial shareholders, defined as those who own 5 percent or more of the company"s share capital prior to the offering, will be subject to a six-month lock-up period during which they will not be able to sell their shares. Substantial shareholders are the PIF, Vision International Investment Company and Al Rajhi Holding Group Co., ACWA said in the statement. ACWA will use the net proceeds of the offering to strengthen its balance sheet and fund future projects in the energy and water desalination sectors over the next five years, it said. "We are deeply honoured that the Public Investment Fund has entrusted us with spearheading the implementation of the National Renewable Energy Programme and proud to be a national champion, making tangible contributions to Vision 2030 initiatives," Mohammad A. Abunayyan, chairman of the board of directors, said in the statement. "ACWA Power Affordable, low-carbon power generation and water desalination is critical for the sustainable development of economies." The IPO could raise more than $1 billion, valuing the company at about $10 billion, according to Reuters. 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.