Saudi Arabia's ACWA Power plans $1.9 billion stock sale to fund expansion

Saudi Arabia's ACWA Power Co. is planning to raise SR7.1 billion or $1.9 billion by issuing stock to existing shareholders, capitalizing on a more than sixfold increase in its share price since a 2021 listing.

Funds from the rights issue will help the power producer finance plans to triple its assets by the end of the decade. It sees spending on its share of projects growing to as much as $2.5 billion annually through to 2030 from a previous range of $1 billion to $1.3 billion, it said in a filing Tuesday. The Riyadh-based company is 44% owned by the Saudi wealth fund, Public Investment Fund.

Acwa Power is a key part of Saudi Arabia's plans to neutralize carbon emissions by 2060 as the company plans solar, wind and green hydrogen plants. It also operates power stations that run on oil and gas, and water desalination projects.

The company's shares have increased about 570 per cent since it listed in October 2021. The stock is up about 47 per cent this year.