Saudi Arabia's ACWA Power, the world’s largest private water desalination company, announced on Sunday the successful completion of its 7.125 billion Saudi riyal ($1.9 billion) rights issue, marking one of the largest capital raises in the history of the Saudi capital market.
In a statement, the company said the transaction drew exceptional investor interest 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 of assets under management by 2030 from the current $117 billion, it said.
It added that 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 Mergers and Acquisitions (M&A) opportunities to complement our portfolio.
“The overwhelming support we received in our capital raise is a resounding vote of confidence in our strategy, growth ambitions, and role in supporting Saudi Arabia’s Vision 2030,” Chief Financial Officer of ACWA Power Abdulhameed Al Muhaidib said in a post on X.
“We have a strong track record, having almost doubled the size of the company in the last three years, and we extend our sincere appreciation to the Capital Market Authority, the Saudi Stock Exchange, and all our transaction partners whose support and collaboration were instrumental to the success of this rights issue,” Al Muhaidib added.
The total offering size amounted to 7.125 billion Saudi riyals, 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.
This successful offering not only reinforces the company’s position but also contributes to Saudi Arabia’s broader transition toward a sustainable and diversified energy future, ACWA Power said.
