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ACWA Power - Riyadh Building. PIF’s wholly-owned company Badeel and ACWA Power invest SAR12.2bln into three new solar projects in Saudi Arabia. Image Courtesy: ACWA Power
Saudi utility giant ACWA Power’s upcoming SAR 7.125 billion ($1.9 billion) rights issue may include a rump placement of unsubscribed shares to ensure the offering is fully subscribed.
The Saudi-listed company announced on Wednesday the issuance of a preliminary prospectus for its plan to increase its capital via a rights issue, which is part of the company’s strategy to consolidate its growth, including tripling its managed assets by 2030.
If any of the shares remain unsubscribed, they will be offered to institutional investors and underwriters, according to the company’s prospectus.
The offering is meant to increase ACWA Power’s capital from its current SAR 7.325 billion. The nominal value of the new ordinary shares to be issued is set at SAR 10 apiece.
The offering is expected to commence three business days from the approval of the capital increase by the Extraordinary General Assembly, which is scheduled on June 30, 2025.
Following the close of the initial subscription period, any remaining unsubscribed shares, referred to as “rump shares”, will be offered at no less than the offering price. Institutional investors can submit their offers, with allocation based on the highest bid.
Any remaining rump shares will be offered to the underwriters, who will subscribe at the initial offering price on a pro-rata basis.
SNB Capital, J.P. Morgan and Citigroup Saudi Arabia have been appointed as joint financial advisors for the rights issue.
(Writing by Cleofe Maceda; editing by Seban Scaria)
