The board of 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.

About the company: Acwa Power is a leading power generation, renewable energy, and water desalination company that is 44% owned by PIF. Its portfolio includes mega projects in Central Asia, Africa and others. Most of its projects are overseas, with Acwa Power planning expansions to China. Its portfolio — which has an investment size of USD 87.9 bn — has an energy generation capacity of 57.1 GW and a desalination capacity of 8 mn m3/day, according to its website.

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