Acwa Power Secures $1.9 Billion Capital Boost

SNB Capital has successfully facilitated the completion of a significant SAR7.1 billion capital increase for Acwa Power, a leading Saudi developer, investor, and operator of power generation and desalination plants. The deal, executed through a rights issue on the Saudi Exchange, marks one of the largest transactions of its kind in the region.

The transaction involved the issuance of 33.93 million new shares, priced at SAR210 per share, equating to a 4.63% increase in the company’s share capital. SNB Capital, a prominent regional financial institution, played multiple roles, acting as the lead manager, joint financial advisor, and lead underwriter for the deal.

The offering drew substantial interest from investors, with the initial subscription phase seeing an impressive coverage rate exceeding 96%. The rump offering was significantly oversubscribed, garnering five times the demand at an average share price of SAR221.54. This response highlights the market’s confidence in Acwa Power’s growth trajectory and its strategic position in the power and water sector.

Zaid Ghoul, the Managing Director and Head of Investment Banking at SNB Capital, expressed pride in supporting Acwa Power through such a landmark transaction. “This milestone reflects the deep trust our clients place in us to advise on key strategic initiatives,” he said.

Acwa Power, which has established itself as a leading player in renewable energy, aims to use the proceeds from the capital increase to fund new projects and further strengthen its position in the global energy market. With a focus on sustainable energy and innovative water solutions, the company is well-positioned to meet growing demand in both sectors, particularly in the Middle East, North Africa, and South Asia.

The rights issue not only reflects Acwa Power’s strong market position but also signals confidence in the broader Saudi economic vision, which places a significant emphasis on renewable energy and sustainability. Saudi Arabia, as part of its Vision 2030, has increasingly positioned itself as a hub for clean energy initiatives, with several large-scale projects underway across the country.

Acwa Power’s portfolio includes projects such as the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, one of the largest single-site solar parks in the world, and the Shuaibah Independent Water and Power Project in Saudi Arabia, one of the largest desalination plants in the region. The company is also expanding its reach into emerging markets, seeking to bring innovative power and water solutions to countries facing infrastructure and resource challenges.

The completion of this capital increase strengthens Acwa Power’s ability to invest in these growing markets and build upon its reputation as a leader in the energy sector. The company has also gained substantial backing from both institutional and retail investors, further solidifying its credibility and presence in the capital markets.

For SNB Capital, this deal further cements its role as a key financial advisor and underwriter in the region’s energy sector. Its ability to attract strong investor interest and manage such a large transaction reflects the growing demand for high-value deals in the Middle East’s booming infrastructure and renewable energy markets.