ACWA Power to use 85% of capital hike proceeds in new local projects: Exec

ACWA Power wind turbine

Abdulhamid Al-Muhaideb, CFO at ACWA Power Co., said as much as 75-85% of proceeds from the planned capital increase will be allocated to new projects within Saudi Arabia.

In an interview with Al Ekhbariya TV today, June 15, the CFO confirmed the Saudi-listed company’s plan to maintain net debt at SAR 20 billion, while also executing new projects worth SAR 34 billion during 2025.

ACWA Power’s project portfolio, according to the top executive, is valued at SAR 400 billion, comprising a power generation capacity of over 78 gigawatts and water desalination capacity of around 9.5 million cubic meters.

The company aims to triple its assets under management (AUMs) to above $250 billion by 2030, he further stated.

In June 2024, ACWA Power's board recommended increasing capital through a SAR 7.12 billion rights offering, according to Argaam’s data.

Last May, the company secured the Capital Market Authority's (CMA) no-objection on its planned capital top-up through a SAR 7.12 billion rights issue. Shareholders are scheduled to vote on this proposal on June 30.

Proceeds will be used to finance ongoing and future projects at SAR 5.28-5.98 billion. Further, up to SAR 1.41 billion will be geared towards funding mergers and acquisitions, while another SAR 351 million will be earmarked for other business purposes.

According to the rights issue prospectus, the company's two major shareholders, the Public Investment Fund and Vision International Investment Co., are committed to subscribing to their full shares of the rights issue, representing SAR 4.77 billion out of the SAR 7.12 billion total.

Some other non-major shareholders are also entitled to subscribing to the rights issue shares in full, including ACWA Power's Chairman. The total number of rights shares that shareholders have committed to subscribe to represents 77.22% of the total offering.