SNB Capital leads $1.9bln rights issue for ACWA Power
SNB Capital acted as lead manager, joint financial advisor, and lead underwriter.
The transaction saw the issuance of 33.93 million new shares at SAR210 ($56) per share, representing a 4.63% increase in Acwa Power's share capital.
The offering attracted robust investor interest, with subscription coverage exceeding 96% during the initial phase and the rump offering oversubscribed by 5.9 times completed at an average share price of SAR221.54 ($59).
"Supporting Acwa Power on this milestone transaction reflects the deep trust our clients place in us to help advise on strategic initiatives," said Zaid Ghoul, the Managing Director and Head of Investment Banking at SNB Capital.
"We remain committed to providing tailored capital markets solutions that enable sustainable growth, support economic diversification, and contribute meaningfully to the continued evolution of Saudi Arabia's financial ecosystem," stated Ghoul.
The strong market response reflects investor confidence in Acwa Power's growth strategy and underscores SNB Capital's ability to execute large and complex transactions, drawing on its extensive experience in capital markets, and highlights the strength of its advisory platform.
SNB Capital remains committed to supporting the development and attractiveness of the kingdom's financial markets, actively contributing to economic diversification in line with Vision 2030 by offering world-class advisory services to both local and international clients, he added.- TradeArabia News Service
Copyright 2025 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
RIYADH
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
an hour ago
- Arabian Post
Acwa Power Secures $1.9 Billion Capital Boost
Greenlogue/AP 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. ADVERTISEMENT 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.
Arabian Post
an hour ago
- Arabian Post
GCC's National Income Declines in 2023 Amid Economic Shifts
Arabian Post Staff -Dubai Data released by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf reveals a notable decline in the Gulf Cooperation Council's national income for 2023. The value of gross national income for the GCC region stood at US$2.143 trillion, down 2.7% from the previous year's figure of US$2.202 trillion. This reduction marks a significant shift in the economic landscape of the Gulf nations. In 2023, the disposable national income, which measures the income available for consumption and savings after taxes and transfers, also saw a downturn, reaching US$1.989 trillion, compared to US$2.515 trillion in 2022. This represents a 3% decrease in the financial resources available for the region's residents and businesses. ADVERTISEMENT The GCC's national income data reflects broader economic trends and shifts in the region's economic structure, with particular attention given to the changes in the oil and non-oil sectors. While the non-oil sector has grown in importance, the oil sector remains a substantial contributor to the region's total income. By the close of 2023, the non-oil sector's value added to the economy amounted to US$513 billion, while the oil sector still held a dominant position with a contribution of US$603.5 billion. Despite the oil sector's continued strength, the overall decline in GNI suggests that broader economic challenges are at play. The sharp contrast in performance between the oil and non-oil sectors could be attributed to various factors, including fluctuations in global oil prices and shifting demand for the region's primary energy exports. While the oil industry continues to be a critical economic driver, the Gulf countries have increasingly turned to diversification efforts, investing heavily in areas such as finance, technology, and tourism to reduce reliance on oil. The results also reflect global economic pressures, particularly the ongoing impacts of inflation, geopolitical instability, and supply chain disruptions. These external factors have influenced both domestic consumption patterns and investment flows within the region. The 2023 decline in disposable national income indicates that households and businesses in the GCC are experiencing reduced financial flexibility, possibly affecting consumption and investment decisions moving forward. Despite these challenges, the GCC economies have shown resilience in their attempts to navigate shifting global economic conditions. Several countries within the group, notably Saudi Arabia and the United Arab Emirates, have implemented ambitious plans for economic diversification under initiatives like Vision 2030. These efforts aim to transform their economies by reducing dependency on oil, focusing instead on sectors such as renewable energy, digital innovation, and high-tech industries. The non-oil sector's performance is a critical metric of success for these diversification strategies. In 2023, the growth of this sector, while still overshadowed by oil, highlights the ongoing transformation of the region's economic framework. The expansion of industries such as construction, manufacturing, and services contributes to this shift, providing the region with a more balanced economic profile, though the full impact of these changes will take time to fully materialise.
Arabian Post
an hour ago
- Arabian Post
Abu Dhabi Trade Growth Reflects Surge in Exports
Arabian Post Staff Abu Dhabi has experienced a significant 10.3% rise in certificates of origin, underscoring the ongoing expansion of its non-oil exports. This increase highlights the Emirate's growing role as a regional hub for trade and investment, further diversifying its economic landscape. Certificates of origin are essential documents for businesses, validating that products are manufactured or processed in a specific country. They play a crucial role in international trade, facilitating the movement of goods across borders. The increase in these certificates indicates that Abu Dhabi's economy is broadening its focus beyond oil, as the UAE intensifies efforts to boost non-oil sectors. ADVERTISEMENT The surge comes as the UAE government has actively pursued a diversification strategy, focusing on sectors such as technology, manufacturing, and services. Notably, Abu Dhabi has ramped up its non-oil exports to emerging markets, with key products ranging from electronics and machinery to food items and chemicals. The growth in certificates of origin points to an evolving trade structure that favours innovation and production capabilities in sectors outside the traditional oil industry. Abu Dhabi's non-oil exports were valued at approximately AED 30 billion in 2024, reflecting both the diversification efforts and robust international demand for products from the region. The emirate's strong trade relationships with Asia, Africa, and Europe have contributed significantly to this surge. As part of its strategy, Abu Dhabi is investing heavily in infrastructure, technology, and human capital to further enhance its export capacity. The role of the Department of Economic Development in Abu Dhabi has been crucial in this context. The department's initiatives, such as promoting industrial zones and improving logistics infrastructure, have played a central role in driving the export growth. Additionally, a range of free trade agreements and initiatives by the UAE government has provided local businesses with better access to international markets, further boosting the appeal of non-oil goods. The diversification strategy aligns with the UAE's broader Vision 2030, a blueprint to reduce the country's reliance on hydrocarbon revenues and transition towards a more sustainable, knowledge-based economy. This shift is evident in the growing importance of sectors such as clean energy, digital technology, and advanced manufacturing. Abu Dhabi's ability to adapt to the demands of global trade while maintaining a solid foundation in its traditional industries demonstrates the effectiveness of this long-term economic vision. Emerging technologies have also played a key role in the growth of non-oil exports. Abu Dhabi has made strides in integrating artificial intelligence and automation into its manufacturing and logistics sectors, enabling businesses to enhance productivity and meet the demands of a global market. These technological advancements have also allowed for greater precision in the production of high-quality goods, further solidifying Abu Dhabi's position as a competitive player in the international trade arena. As global supply chains become more complex, businesses in Abu Dhabi are focusing on building resilient trade networks. The growth in certificates of origin is a clear indication that the Emirate is well-positioned to take advantage of this trend. The surge reflects both the robustness of its industrial sectors and the efficacy of its policies, which have fostered an environment conducive to trade expansion. With its sights set on continued diversification, Abu Dhabi is increasingly looking to strengthen its ties with emerging markets. Asia, in particular, remains a key trading partner, with demand for non-oil goods steadily rising. The growing middle class in markets such as China, India, and Southeast Asia presents a lucrative opportunity for Abu Dhabi's non-oil sectors to tap into new revenue streams.
