Acwa Power raised SAR 6.9 bn from the rights issue trading and new shares subscription phase of its SAR 7.1 bn rights issue, it said in a disclosure to Tadawul on Thursday. The offering, which concluded last week, was 96.2% covered, selling 32.7 mn shares.

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What’s next? The renewables giant will run a rump offering of about 1.3 mn unsubscribed shares to institutional investors between 21-22 July. Shares will be allocated to the highest bidders, with a minimum price of SAR 210, to be distributed on a pro-rata basis. Any unsold shares will be purchased by underwriters at the offer price.

IN CONTEXT- Acwa Power’s rights share issuance will increase its capital by 4.63% to SAR 7.67 bn distributed across 766.5 mn shares, part of the company’s strategy to triple its assets under management to USD 250 bn by 2030 and bolster its capital base.

We talked to CEO Marco Arcelli last week, to break down the details of the transaction and what it signals for the company’s future. Arcelli highlighted that the rights share issuance will grant the company the immediate firepower to continue aggressive expansion, with 75-86% of the proceeds directed toward new projects in the Kingdom.

ADVISORS- SNB Capital is the lead manager on the transaction, in addition to serving 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.

ALSO FROM ACWA POWER-

Acwa Power inked USD 800 mn worth of agreements with Senegal’s government to develop the largest desalination project in West Africa, Grande-Côte, according to a press release. The initiative aims to boost water security and infrastructure for the West African country.

The details: The project — implemented under a PPP contract — will see achieve financial closure by next year and operations kick off by 2031. The project will produce up to 400k cubic meters a day of desalinated water for Senegal’s capital Dakar and its surroundings, delivered in two phases of 200k cubic meters each. The plant will be powered by renewables sourced from Senegal’s national grid.

ICYMI- The finalized agreement comes a year after Senegal scrapped the project’s contracts inJuly 2024 over a dispute on the price of water provided. The updated agreement has a lower price of water, set at USD 0.69 per cubic meter (down from USD 0.76), along with a lower annual rental fee and a doubled solar capacity of 300 MW, according to Bloomberg.

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