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(Bloomberg) — Saudi Arabia’s Acwa Power Co. will proceed with its 7.1 billion riyals ($1.9 billion) rights issue after gaining the approval of its shareholders, marking a key step in its plan to fund an aggressive expansion in renewable and clean energy projects.
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The company will offer about 34 million shares at 210 riyals a piece. Shareholders met on Monday and approved the plan, according to a statement.
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Acwa has been one of the worst performers on Saudi Arabia’s stock exchange in 2025, with shares down 36% so far this year to about 254 riyals at yesterday’s close. The kingdom’s stock exchange also just posted its biggest quarterly loss since late 2022.
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The company sees the rights issue as critical to its plan to boost annual project spending to as much as $2.5 billion as it seeks to triple assets under management by 2030. It’s working to expand into countries like China, Malaysia and Turkey, and is also building new capacity at home as part of Saudi Arabia’s drive to neutralize carbon emissions by pushing into solar, wind and green hydrogen.
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Acwa intends to use 75% to 85% of the capital to support greenfield projects and much of the rest for mergers and acquisitions, according to a company presentation.
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Acwa recently agreed to buy power and water assets in Kuwait and Bahrain from France’s Engie SA for almost $700 million, and struck a deal late last year for more than one gigawatt of renewable energy projects in China. China is a focal point for the company, which wants assets there to make up 10% of its portfolio by 2030.
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The rights issue comes as volatile oil prices and regional tensions have weighed on recent Saudi public offerings. Even so, the company has said it plans to press ahead and complete the offering this month.
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Acwa — which counts Saudi Arabia’s sovereign wealth fund as its top shareholder — trades at one of the highest valuations among global peers, with a price-to-earnings ratio of almost 100.
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—With assistance from Verity Ratcliffe.
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(Updates with details of shareholder approval in 1st and 2nd paragraph.)
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