ACWA Power Successfully Completes SAR 7.125 Billion Rights Issue – One of the Largest in Saudi Capital Market History
Riyadh, Kingdom of Saudi Arabia: ACWA Power, the world’s largest private water desalination company, leader in energy transition and first mover into green hydrogen, announced the successful completion of its SAR 7.125 billion rights issue, marking one of the largest capital raises in the history of the Saudi capital market.
The transaction drew exceptional investor interest, underscoring strong confidence in ACWA Power’s growth trajectory and strategic vision, with an overall subscription of 96%, and a 6x over-subscription in the rump placement with an overwhelming majority going to international investors, despite the tight discount level and the volatile market of the recent months.
The proceeds from the rights issue will be used to fund ACWA Power’s growth to achieve 250 billion USD of assets under management by 2030 from the current 117 billion USD. These funds will be deployed across ACWA Power’s robust project development pipeline, including power, water desalination and green hydrogen projects, as well as selective M&A opportunities to complement our portfolio.
The total offering size amounted to SAR 7.125 billion, with 96.2% of the new shares subscribed during the subscription period. The rump offering, where the qualified institutional investors had the chance to bid for the remaining unsubscribed new shares, was oversubscribed by 592%, demonstrating significant interest from investors beyond the initial shareholder base. Foreign investors accounted for 97% of the allocated rump shares, reinforcing the Company’s strong appeal to the global investment community.
In a first for the Saudi market, ACWA Power hosted a dedicated investor engagement event focused on the retail segment, which was attended by over 200 investors. This initiative highlighted the Company’s commitment to inclusivity, education, and long-term shareholder value.
This successful offering not only reinforces ACWA Power’s position but also contributes to Saudi Arabia’s broader transition toward a sustainable and diversified energy future.