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Acwa Power issues prospectus for its rights issue: Renewables giant Acwa Power plans to raise SAR 7.1 bn through a rights issue, according to a preliminary prospectus (pdf). The move, pending shareholder approval, got the greenlight from the Capital Market Authority late last month.
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The rationale: The move is part of the company’s strategy to triple its AUM by 2030 and bolster its capital base. The Tadawul-listed, PIF-backed firm boasts a current capital of SAR 7.33 bn divided across 732.7 mn shares.
Use of proceeds: Some SAR 5.3-6 bn are earmarked for financing current and future projects. SAR 1.4 bn will be allocated to M&As, while SAR 351 mn will cover general business operations, and SAR 88.5 mn will cover offering expenses. Any unsubscribed shares will be sold to institutional investors in a rump offering.
What we don’t know: Details on the number of shares and offer price are pending the approval of shareholders, reportedly set to vote on 30 June, according to Argaam. Meanwhile, information on the timeline of the offering and its trading debut is yet to be disclosed.
ADVISORS: SNB Capital is the lead manager on the transaction while also acting as a financial advisor along with JP Morgan and Citigroup. The three banks are joined by Saudi Fransi Capital, FAB Capital, Emirates NBD Capital, and Natixis Saudi Investment as joint underwriters.
IN OTHER CAPITAL MARKETS NEWS-
D360 Bank’s general assembly approved a capital increase of 27% to SAR 2.1 bn, raising SAR 450 mn through a rights issue of 45 mn shares, according to a statement by Tadawul-listed Derayah Financial. The capital raise will support further development of the bank’s digital platform and operational infrastructure amid its expansion.
Derayah — which holds a 20% stake in the bank— plans to subscribe to its portion of the rights issue, investing SAR 90 mn from internal funds to offer its investment products to D360’s client base in the consumer banking sector.
