ACWA Power (2082) intends to increase its capital by USD 1.9 billion (approximately SAR 7 billion) via a rights issue offering.
Details
ACWA Power, one of the world’s largest energy companies, stated that the issuance would allow it to solidify its growth strategy.
The company aims to triple its managed assets by 2030 and strengthen its financial position.
So What
The company expects the average share of its annual investments between 2024 and 2030 will increase significantly.
It anticipates investments ranging between USD 2 -2.5 billion annually, compared to its previous average of USD 1 – 1.3 billion per annum.
The company added that the capital increase would enable it to continue investing in the growth of its portfolio while maintaining a strong financial position.
Some Context
ACWA Power is looking to expand its foothold in China as part of its global renewables and green hydrogen production spree.
The company also operates power plants serving oil, gas, and desalination projects.
Though the share value fell by as much as 8% on Tuesday, the company’s shares have surged approximately 570% since its listing in October 2021.
The shares have seen a 47% leap in the market value this year.
Now What
ACWA Power is an integral part of Saudi Arabia’s plans to become carbon neutral by 2060.
This will be accomplished through solar energy, wind energy, and green hydrogen developments, both at home and abroad.
KSA’s Public Investment Fund owns about 44% of the company.
