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Saudi utility firm ACWA Power is set to increase its capital by up to SAR 7.125 billion ($1.9 billion) through a rights issue.
Saudi Arabia’s Capital Market Authority (CMA) confirmed on Tuesday that it has approved the company’s request to proceed with the offering.
The company, a unit of Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF), is expected to determine the price and number of shares to be offered after the extraordinary general assembly meeting.
Last year, the company’s board of directors recommended the capital increase “to anchor its growth strategy” of expanding the assets under management to $250 billion by 2030.
The company had anticipated that its average annual equity commitments would reach around $2.5 billion between 2024 and 2030, compared to an earlier range of $1 billion to $1.3 billion.
(Writing by Cleofe Maceda; editing by Seban Scaria)
