Saudi Arabia’s ACWA Power Co. has obtained the Capital Market Authority’s (CMA) no-objection for its proposed capital increase through a rights issue valued at SAR7.125 billion ($1.9 billion), as indicated in a recent Tadawul filing.
Subscription eligibility details
Eligibility for subscription will be restricted to shareholders who are registered with the Security Depository Center (Edaa) as of the close of trading on the second day following the extraordinary general meeting (EGM), the date of which is yet to be determined by ACWA Power’s board of directors.
Moreover, the offering price and the quantity of shares available will be established by the company after trading concludes on the same day that the EGM is scheduled.
A rights issue prospectus will be made available to the public at a later date.
The CMA’s endorsement of the proposed initiative should not be interpreted as a recommendation to engage in the offer or invest in the company’s shares. It simply indicates that the legal requirements under the Capital Market Law and its Implementing Regulations have been satisfied.
Tripling operations by 2030
In June 2024, ACWA Power’s board advised increasing capital through a SAR 7.125 billion rights offering, as reported by Argaam’s data.
The proceeds from this issuance will support its new growth strategy adopted in 2023, which aims to triple operations by 2030. This will necessitate higher annual investment commitments, in addition to sustaining a robust financial standing, the company noted.
