Saudi Arabia’s ACWA Power Sets Share Price at $56 for $1.9 Billion Rights Issue
Saudi Arabia’s energy company ACWA Power will raise $1.9 billion (SAR 7.1 billion) through a rights issue, after getting approval from its shareholders. This money will help the company grow in the renewable and clean energy sectors.
Details of the Rights Issue
ACWA Power will offer around 34 million new shares at $56 (SAR 210) each. Shareholders approved the plan in a recent meeting, as shown in stock market filings.
The company plans to use most of the money—between 75% and 85%—to fund new renewable energy projects. The rest will go toward buying other companies. This move is part of ACWA Power’s strategy to triple its managed assets by 2030 and strengthen its financial health.
Expansion Plans
ACWA Power wants to expand in countries like Turkey, China, and Malaysia. It also aims to increase its power production in Saudi Arabia, focusing on wind, solar, and green hydrogen to help reduce carbon emissions.
Before this plan, ACWA had a capital of $1.95 billion (SAR 7.32 billion). After the rights issue, this will increase to $2.04 billion (SAR 7.66 billion).
Market Conditions and Share Performance
The rights issue comes during a challenging time, as stock markets in the region are affected by conflicts and changes in oil prices. ACWA Power aims to finish the share offering by July.
If not all shares are bought during the initial period, the remaining ones—called “rump shares”—will be offered to big investors and underwriters at the same or higher price.
On Monday, ACWA Power’s stock fell by 3.13% to $66.13 (SAR 248). So far this year, the company’s shares are down 36%, making it one of the worst-performing stocks on the Saudi stock market (Tadawul).
Recent Expansion Deals
In May, ACWA signed agreements with Malaysian companies to look into developing power projects of up to 12.5 gigawatts by 2040, with an expected investment of $10 billion.
In February, the company agreed to buy power and water plants in Kuwait and Bahrain from a French company for $693 million (SAR 2.6 billion).
Published: 2nd July 2025
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