Acwa Power is inching closer to issuing a SAR 7.1 bn rights issue aimed at increasing its capital after it secured regulatory approval, the Capital Market Authority (CMA) said in a statement. The company will determine the final offering price and the number of shares to be issued at a later stage.

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Use of proceeds: “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 in June 2024.

Bracing for more spending: The renewables giant sees spending on its projects between 2025 and the end of the decade rising to USD 2-2.5 bn annually, from an earlier range of USD 1-1.3 bn annually.

What Acwa has been up to: Acwa Power has landed a spree of agreements recently, including USD 500 mn in agreements this week with US firms across solar, desalination, green hydrogen, and ammonia. In February, it inked a SAR 13.4 bn power purchase agreement with Saudi Electricity Company and the Saudi Power Procurement Company for the Qurayyah IPP expansion.

Market reax: Acwa’s price declined 4.4% to SAR 274 by the end of yesterday’s session closing.

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