RIYADH: Saudi Power and Water Utility Co. for Jubail and Yanbu, known as Marafiq, has selected banks as it seeks to raise $1.2 billion from an initial public offering. HSBC Holdings Plc and Riyad Capital are among the banks hired to manage the IPO process, Bloomberg reported citing unnamed sources. The sources added that Marafiq is looking to sell a 30 percent stake to the public by the second half of this year. Marafiq and the selected banks did not comment on the news, Bloomberg reported. The utility is owned by four major shareholders — Saudi Aramco, Saudi Basic Industries Co., the Public Investment Fund, and the Royal Commission for Jubail and Yanbu.