Acwa Power set to increase capital by SAR 7.1 bn to fund expansions

The board of KSA renewables giant Acwa Power has recommended increasing its capital by SAR 7.1 bn through a rights issuance, it said in a disclosure to Tadawul yesterday. The funds will be channeled towards supporting Acwa Power’s growth plans, which aim to triple its assets by 2030.

In numbers: Acwa Power sees spending on its projects between 2025 and the end of the decade surging to USD 2-2.5 bn annually from an earlier range of USD 1-1.3 bn annually, according to the disclosure. “This capital increase will allow Acwa Power to continue to invest in the growth of its portfolio while maintaining a strong financial position,” Acwa Power said.

What’s next: The recommendation is still subject to the approval of regulatory authorities and the general assembly, Acwa Power said. The company also needs to appoint a financial advisor for the issuance and submit the necessary paperwork to the Capital Market Authority.

Market reax: Acwa Power’s fell 8% during intraday trading, but pared back its losses to close down 2.7%. The company is gearing up for the capital increase amid a 570% surge in its share price since its 2021 listing, according to Bloomberg.