Saudi Utility Alkhorayef Eyes Acquisitions for Growth
(Bloomberg) -- Alkhorayef Water & Power Technologies is eyeing acquisitions of new businesses to help the Riyadh-based utility continue to expand regionally.
“We don’t see a merger,” Chief Executive Officer Rami Moussilli said Wednesday in an interview. “But we do see some acquisitions in the future of businesses that complement our portfolio, definitely.”
The Saudi Arabian utility is also planning to triple its capital expenditure this year to 6% of total revenue as it undertakes new projects, Moussilli said, adding that these will be funded through loans.
Alkhorayef, which handles water and wastewater fields in the oil-rich kingdom, is the first to be listed on the main Saudi equities market this year. It counts some of the kingdom’s government-owned firms and the Ministry of Water, Environment and Agriculture among its clients.
Shareholders, including Alkhorayef Group Co. and Alkhorayef Development, last month raised 540 million riyals ($144 million) from selling a 30% stake. The company priced its initial public offering at 72 riyals, the top end of a range, seizing on strong demand from investors that supported several deals in Saudi Arabia last year.
On Monday, stock surged as much as 30% on its trading debut and closed at 108.80 riyals on Wednesday. Link to IPO prospectus
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