Riyadh, Saudi Arabia — ACWA Power has confirmed its plans to raise SAR 7.12 billion through a rights issue as part of its broader growth strategy. The ACWA Power capital increase will involve issuing approximately 33.928 million new shares at an offering price of SAR 210 per share.
In a statement to Tadawul Saudi on Monday, the company explained that its current issued capital stands at approximately SAR 7.325 billion, divided over 732.56 million shares.
Following the rights issue, ACWA Power’s issued capital will rise to SAR 7.664 billion. The total number of shares will increase to nearly 766.49 million, with a nominal value of SAR 10 per share. The new share issuance represents approximately 4.63% of the company’s current capital.
ACWA Power Capital Increase Targets Growth and Financial Strength
The capital increase aligns with ACWA Power’s strategy to triple its managed assets by 2030. The company also aims to reinforce its financial position to support expansion, particularly in the renewable energy and water sectors.
Eligibility to subscribe is reserved for shareholders owning shares at the close of trading on the day of the upcoming Extraordinary General Assembly. Shareholders must also be registered in the company’s shareholder registry at the Securities Depository Center (Edaa) by the end of the second trading day following the meeting.
The capital raise reflects ACWA Power’s confidence in market demand and its commitment to financing growth through shareholder participation.
The Saudi Standard’s View: Rights Issue Supports Expansion but May Test Market Appetite
ACWA Power’s rights issue demonstrates the company’s ambition to significantly scale its operations. Raising SAR 7.12 billion provides essential capital for infrastructure expansion, particularly as Saudi Arabia accelerates investments in energy and water projects.
However, shareholder participation will be critical to the offering’s success. While the SAR 210 per share price reflects confidence in ACWA Power’s valuation, it also tests investor appetite amid broader market volatility.
For shareholders, the offering represents both an opportunity to support long-term growth and a short-term capital commitment. ACWA Power’s ability to execute its 2030 asset expansion plans will determine whether the capital raise translates into sustained shareholder value.
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