The development will bring PIF’s total shareholding in the company to 25 per cent.
The kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), has taken a 15.2 per cent direct stake in ACWA Power, reported Reuters.
PIF already owns 9.8 per cent stake in ACWA through its subsidiary Sanabail Direct Investments Company.
Plans for the stake sale have been in place since 2016, when the PIF hired HSBC to advise it on the purchase.
ACWA had hired JP Morgan, Citigroup, Natixis and Riyad Capital to advise on a planned sell of a 30 per cent stake in an initial public offering in Riyadh by the end of the year.
In a bid to grow and diversify its economy through its Vision 2030, Saudi Arabia aims to expand the PIF into the world’s largest sovereign wealth fund, while deploying its investments to boost strategic companies inside the kingdom.
Mohammad Abunayyan, ACWA chairman, said, “The PIF’s endorsement underlines the central role we play in the Saudi economy and our successful international expansion all geared towards achieving the objectives of Vision 2030.”