ACWA Power’s Board of Directors has recommended increasing its capital by SAR 7.125 billion through a rights issue, which will enable the company to consolidate its growth strategy, which aims to triple its assets under management by 2030 and strengthen its financial position. The company’s paid-up and authorized capital currently stands at SAR 7.325 billion, distributed over 732.562 million shares, with a nominal value of SAR 10 per share.
ACWA Power said in a statement on the Tadawul website on Tuesday that the offering of priority rights shares will allow the company to consolidate its growth strategy of tripling its managed assets by 2030 and strengthening its financial position.
ACWA Power noted that the right to priority rights will be for shareholders who own shares on the day of the upcoming extraordinary general assembly, which will later decide to increase the capital by offering priority rights shares, and whose names appear in the issuer’s shareholders’ register at the Depository Center at the end of the second trading day following the date of the assembly.
The company added that the Board of Directors’ recommendation is subject to the approval of the relevant regulatory authorities and ACWA Power shareholders at the Extraordinary General Assembly, noting that it will later announce the appointment of the financial advisor to offer priority rights shares and submit the capital increase request file to the Capital Market Authority.
ACWA Power revealed in its statement that the capital increase will support the company’s new growth strategy, which aims to triple its business by 2030, noting that with the upcoming growth targets, the company estimates that its average share in annual investments between 2024 and 2030 will increase significantly to $2-2.5 billion annually compared to the previous period, which amounted to $1-1.3 billion annually. This increase in capital will also allow the company to continue investing in the growth of its portfolio while maintaining a strong financial position.
