Advisement provided by our law firm on ACWA Power Company's groundbreaking rights offering
In a significant move towards accelerating its growth in renewable energy, water desalination, green hydrogen, and strategic M&A opportunities, ACWA Power Company has successfully completed a SAR 7.125 billion rights issue. The proceeds from this offering will enable the company to expand its power generation projects, invest in water desalination infrastructure, and develop the green hydrogen value chain, among other initiatives.
The underwriter syndicate for the rights issue was led by SNB Capital, J.P. Morgan Saudi Arabia, and Citigroup Saudi Arabia. Global law firm White & Case LLP advised the underwriters on this transaction.
The rights issue attracted exceptional investor interest, with 96.2 percent of the shares subscribed during the subscription period. Notably, 97 percent of the rump shares were allocated to international investors.
The White & Case team that advised on the transaction was led by partners Sami Al-Louzi (Dubai) and Majed Alkuraydis (Riyadh). The team included partners Laura Sizemore (London), Inigo Esteve (London), and Roger Gaspard (Dubai) and associates Andrew Scott, Cassy Raby (both Dubai), Husam Azhar, and Sarah Alrasheed (both Riyadh).
ACWA Power's strategic goal is to manage $250 billion of assets by 2030. More specifically, proceeds will support:
- Power generation expansion: Development of 15 GW of wind and solar projects within Saudi Arabia, with commissioning targeted between 2027-2028, backed by new power purchase agreements aligned with Saudi Arabia’s National Renewable Energy Programme.
- Water desalination projects: ACWA Power, already the world’s largest private water desalination company, continues to invest in expanding this core business.
- Green hydrogen initiatives: Establishment of a green hydrogen and renewable energy export corridor between Saudi Arabia and Europe, aligning with both Saudi Vision 2030 and Europe’s decarbonization strategies.
- M&A and geographic expansion: Seeking investment opportunities primarily in Southeast Asia and collaboration with China to secure supply chains and new project development.
Funds will also support acquisitions and partnerships to broaden their geographic and sectoral reach, mainly in Southeast Asia and China, as well as enhancing human capital through training and development programs.
The proceeds from the offering will allow ACWA Power to pursue selective M&A opportunities and advance towards its strategic goal of managing $250 billion of assets by 2030. This move solidifies ACWA Power's leadership role in energy transition infrastructure, water solutions, green hydrogen, and global market expansion.
[1] ACWA Power press release, 2022. [2] White & Case press release, 2022. [3] Saudi Gazette, 2022. [4] Arab News, 2022. [5] Saudi Arabia's National Renewable Energy Programme, 2021.
- In the law firm White & Case LLP, partners Sami Al-Louzi and Majed Alkuraydis led the team that advised on ACWA Power's SAR 7.125 billion rights issue.
- The rights issue attracted substantial interest from investors, with 97% of rump shares allocated to international investors.
- The proceeds from the rights issue will support ACWA Power's strategic goal of managing $250 billion of assets by 2030.
- ACWA Power plans to expand power generation, specifically developing 15 GW of wind and solar projects in Saudi Arabia, supported by new power purchase agreements.
- Seeking investment opportunities primarily in Southeast Asia and collaboration with China, ACWA Power aims to secure supply chains and new project development.
- The funds will also be used for acquisitions and partnerships to broaden ACWA Power's reach in Southeast Asia and China.
- ACWA Power's initiatives include water desalination projects, green hydrogen initiatives, and the establishment of a green hydrogen and renewable energy export corridor between Saudi Arabia and Europe.
