ACWA Power to Raise SAR 7,125 Million Through Rights Issue

Saudi Arabia's utility company, ACWA Power, has announced plans to significantly boost its paid-up capital, aiming to support its ambitious investment goals in renewable energy.

The company submitted a formal application to the Capital Market Authority (CMA) recently, seeking approval for a rights issue to raise 7,125 million Saudi Riyals (~ USD 1.9 billion). According to a statement released on the Saudi stock exchange, Tadawul, ACWA Power plans to offer discounted shares to its existing shareholders as part of the capital increase initiative. Further, it said, "ACWA Power announces the submission of an application to increase the Company’s capital by offering the rights issue to the Capital Market Authority." 

As per reports, the decision to raise capital aligns with ACWA Power's revised investment strategy, which projects an average annual commitment of USD 2 billion to USD billion between 2024 and 2030. This marks a sharp increase from its previous range of USD 1 billion to USD 1.3 billion annually, reflecting the company’s growing focus on renewable energy infrastructure and sustainable technologies.

In April 2024, ACWA Power entered into a strategic partnership with the International Renewable Energy Agency (IRENA) to promote the global transition to clean energy. The collaboration focusses on investments in renewable energy infrastructure, develop green hydrogen technologies, and integrate solar energy, smart grids, and sustainable water-energy solutions.

Moreover, on financial front, the company has shown strong performance in 2024. In the first half of the year, ACWA Power recorded a 52 percent year-on-year increase in net profit, reaching 630.6 million Riyals (~ USD 168 million). This growth underscores the firm’s solid market position and its ability to generate value from its expanding portfolio of projects.

The planned capital increase comes as ACWA Power and its partners, including the Public Investment Fund’s (PIF) subsidiary Badeel, continue to invest heavily in Saudi Arabia’s renewable energy landscape. The recent investments include a commitment of 12.2 billion Riyals into three new solar projects, furthering the Kingdom’s Vision 2030 goal of becoming a global leader in sustainable energy.

The recent move by ACWA Power to raise capital signals its readiness to scale operations and capitalise on growing demand for clean energy solutions both locally and internationally.