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Logo of ACWA Power Co.
ACWA Power Co. secured the Capital Market Authority's (CMA) no-objection on its planned capital top-up through a rights issue worth SAR 7.125 billion, according to a Tadawul filing today, May 20.
Subscription eligibility will be limited to shareholders registered with the Security Depository Center (Edaa) as of the closing of the second trading day after the deciding extraordinary general meeting (EGM), the date for which is yet to be set by ACWA Power’s board of directors.
The offering price and the number of shares on offer shall be determined by the company after the close of trading on the same day the EGM is due.
The rights issue prospectus will be published to the public at a later date.
The CMA's approval of the proposed move should never be considered as a recommendation to participate in the offer nor invest in the company's shares. It merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.
In June 2024, ACWA Power's board recommended increasing capital through a SAR 7.125 billion rights offering, according to Argaam’s data.
The issuance’s proceeds will support its new growth strategy that was adopted in 2023, which targets tripling operations by 2030. This requires higher annual investment obligations, besides maintaining a strong financial position, the company noted.
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