ACWA Power board recommends capital hike via SAR 7.12B rights issue

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ACWA Power Co.’s board of directors recommended to increasing the company’s capital through a SAR 7.12 billion rights issue, according to a statement to Tadawul.

This capital increase aims to anchor ACWA Power’s growth strategy of tripling the assets under management by 2030 and enhance its financial position.

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Shareholders of record on the extraordinary general meeting (EGM) date, during which the capital increase is approved, and those registered with Edaa on the second day of trading following the EGM, will be eligible for the increase, the statement added.

The capital top-up recommendation will be subject to the approval of the regulatory authorities and the EGM.

Any relevant updates will be duly revealed including appointing a financial advisor and submitting the capital hike file to the Capital Market Authority (CMA), the statement added.

ACWA Power further noted that in line with the new growth projections, the company estimates its average annual equity commitment amount between 2024 and 2030 to increase to $2-$2.5 billion per year from the earlier range of $1-$1.3 billion.

This capital increase will allow ACWA Power to continue to invest in the growth of its portfolio while maintaining a strong financial position.