Saudi Arabia Said to Consider Privatizing Power Company Marafiq

Saudi Arabia’s Power and Water Company for Jubail and Yanbu, or Marafiq, is considering plans for an initial public offering, according to people familiar with the matter.

Marafiq plans to list on the Saudi stock exchange Tadawul and a sale won’t happen until at least 2019, the people said, asking not to be identified as the information is private. The company hasn’t decided on the size of the stake it will sell or how much it plans to raise from the offering, they said.

Marafiq, whose shareholders include the Public Investment Fund, Saudi Arabian Oil Co. and Saudi Basic Industries Corp., is currently seeking to appoint a financial adviser to work on plans to acquire power plants in the kingdom and the company will likely use the same adviser to help it prepare for the IPO, the people said. Marafiq declined to comment.

Saudi Arabia is implementing a transformation plan aimed at weaning the economy off oil. As part of these efforts, the government plans to create the world’s largest sovereign fund and sell hundreds of state assets, including Aramco, as well as stakes in the stock exchange, football clubs and flour mills.

Marafiq is the main power provider for the industrial cities of Jubail and Yanbu, according to its website. It supplies energy for oil and petrochemical facilities owned by companies including Aramco and Sabic.

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