Acwa Power, the world’s largest private water desalination company, leader in energy transition and first mover into green hydrogen, has announced the successful completion of its SAR7.13 billion ($1.9 billion) rights issue, thus marking one of the largest capital increases in the history of the Saudi capital market.

 

Despite the tight discount level and the volatile market of the recent months, the transaction drew exceptional investor interest, underscoring strong confidence in Acwa Power’s growth trajectory and strategic vision, with an overall subscription of 96%, and a 6x over-subscription in the rump placement with an overwhelming majority going to international investors, said the utility major in a statement.

 

The proceeds from the rights issue will be used to fund Acwa Power’s growth in a bid to achieve its target of $250 billion of assets under management (AUMs) by 2030 from the current $7 billion, it stated. 

 

It will be deployed across Acwa Power’s robust project development pipeline, including power, water desalination and green hydrogen projects, as well as selective M&A opportunities to complement our portfolio, it added.

 

On the successful deal, Chief Financial Officer Abdulhameed Al Muhaidib said: "The overwhelming support we received in our capital raise is a resounding vote of confidence in our strategy, growth ambitions, and role in supporting Saudi Arabia’s Vision 2030."

 

Al Muhaidib said: "Acwa Power has a strong track record, having almost doubled the size of the company in the last 3 years, and we are deeply grateful for the trust and continued support of our shareholders to achieve our 2030 target." 

 

"We extend our sincere appreciation to the Capital Market Authority, the Saudi Stock Exchange, and all our transaction partners whose support and collaboration were instrumental to the success of this rights issue," he added.

 

The total offering size amounted to SAR 7.125 billion, with 96.2% of the new shares subscribed during the subscription period. 

 

The rump offering, where the qualified institutional investors had the chance to bid for the remaining unsubscribed new shares, was oversubscribed by 592%, demonstrating significant interest from investors beyond the initial shareholder base. 

 

Acwa Power said foreign investors accounted for 97% of the allocated rump shares, thus reinforcing its strong appeal to the global investment community.

 

In a first for the Saudi market, Acwa Power hosted a dedicated investor engagement event focused on the retail segment, which was attended by over 200 investors. This initiative highlighted the company’s commitment to inclusivity, education, and long-term shareholder value.

 

This successful offering not only reinforces Acwa Power’s position but also contributes to Saudi Arabia’s broader transition toward a sustainable and diversified energy future, it added.-TradeArabia News Service