Latest news with #AbdulhameedAlMuhaidib
Zawya
29-07-2025
- Business
- Zawya
Acwa Power raises $1.9bln capital through new rights issue
Acwa Power, the world's largest private water desalination company, leader in energy transition and first mover into green hydrogen, has announced the successful completion of its SAR7.13 billion ($1.9 billion) rights issue, thus marking one of the largest capital increases in the history of the Saudi capital market. Despite the tight discount level and the volatile market of the recent months, the transaction drew exceptional investor interest, underscoring strong confidence in Acwa Power's growth trajectory and strategic vision, with an overall subscription of 96%, and a 6x over-subscription in the rump placement with an overwhelming majority going to international investors, said the utility major in a statement. The proceeds from the rights issue will be used to fund Acwa Power's growth in a bid to achieve its target of $250 billion of assets under management (AUMs) by 2030 from the current $7 billion, it stated. It will be deployed across Acwa Power's robust project development pipeline, including power, water desalination and green hydrogen projects, as well as selective M&A opportunities to complement our portfolio, it added. On the successful deal, Chief Financial Officer Abdulhameed Al Muhaidib said: "The overwhelming support we received in our capital raise is a resounding vote of confidence in our strategy, growth ambitions, and role in supporting Saudi Arabia's Vision 2030." Al Muhaidib said: "Acwa Power has a strong track record, having almost doubled the size of the company in the last 3 years, and we are deeply grateful for the trust and continued support of our shareholders to achieve our 2030 target." "We extend our sincere appreciation to the Capital Market Authority, the Saudi Stock Exchange, and all our transaction partners whose support and collaboration were instrumental to the success of this rights issue," he added. The total offering size amounted to SAR 7.125 billion, with 96.2% of the new shares subscribed during the subscription period. The rump offering, where the qualified institutional investors had the chance to bid for the remaining unsubscribed new shares, was oversubscribed by 592%, demonstrating significant interest from investors beyond the initial shareholder base. Acwa Power said foreign investors accounted for 97% of the allocated rump shares, thus reinforcing its strong appeal to the global investment community. In a first for the Saudi market, Acwa Power hosted a dedicated investor engagement event focused on the retail segment, which was attended by over 200 investors. This initiative highlighted the company's commitment to inclusivity, education, and long-term shareholder value. This successful offering not only reinforces Acwa Power's position but also contributes to Saudi Arabia's broader transition toward a sustainable and diversified energy future, it added. Copyright 2025 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Arab News
06-07-2025
- Business
- Arab News
ACWA Power plans selective mergers to boost profits, secures $15.4bn in financing over 2 years
RIYADH: Saudi Arabia's energy and water desalination giant ACWA Power has drawn investor attention regarding its expansion strategy, following the approval of its shareholders for a SR7.1 billion ($1.8 billion) rights issue. In an interview with Al-Eqtisadiah, Abdulhameed Al-Muhaidib, the company's chief financial officer, outlined ACWA Power's growth plans, financing approach, and future targets. ACWA Power has been actively expanding its global presence, securing $500 million in new US agreements and reinforcing its position as Uzbekistan's top energy investor with $15 billion committed to 19 projects, including 18 in renewables. Strategic expansion and capital increase Al-Muhaidib said over 77 percent of the rights issue was subscribed by major shareholders, reinforcing confidence in ACWA Power's strategy. The capital raise aims to fund new projects and expand the company's global footprint, particularly in renewables, water desalination, and green hydrogen. 'This move supports our long-term strategy to triple managed assets to $250 billion by 2030,' Al-Muhaidib told Al-Eqtisadiah. The company expects annual equity contributions of $2 to $2.5 billion from 2024 to 2030, up from $1 to $1.3 billion in previous years. Selective mergers and global targets ACWA Power is eyeing selective mergers and acquisitions in key markets to accelerate profitability and secure stable cash flows. 'M&A opportunities allow us to fast-track earnings while maintaining financial discipline,' Al-Muhaidib said. The firm is actively exploring investments in Malaysia, Africa, and other Asian markets with high infrastructure demand. The proceeds from the rights issue will primarily fund new projects in the Kingdom and strategic international markets, including the Middle East, Central Asia, Southeast Asia, and China. 2030 goals: renewables, water, and green hydrogen By 2030, ACWA Power aims to exceed 175 gigawatts in power generation capacity, up from 78.9 GW today, produce 15 million cubic meters of desalinated water daily, and generate 1 million tonnes of green hydrogen annually, with potential for an additional 1 million tonnes under new contracts. Balancing debt and equity Despite securing SR58.6 billion in project financing over the past two years, Al-Muhaidib said that the capital increase does not signal a reduction in borrowing. 'We maintain a balanced approach, leveraging both project debt and equity to sustain growth,' he added. ACWA Power's net debt-to-operating cash flow ratio stands at 6.4 times, which is deemed healthy for growth-focused firms. Asia expansion and China entry ACWA Power's recent acquisition in China marks its broader ambitions in Asia. 'China is a strategic market, and we are evaluating opportunities in Malaysia and Africa,' Al-Muhaidib said. The company has an 80-person team in China and a 1 GW renewable pipeline there. Rapid execution and financing success The SR58.6 billion in project financings reflects ACWA Power's strong lender relationships and execution capabilities. 'Our integrated model — combining development, investment, and operations — ensures timely delivery,' Al-Muhaidib added. With a focus on disciplined growth, ACWA Power remains committed to its 2030 targets while maintaining environmental, social and governance standards.
Arab News
15-06-2025
- Business
- Arab News
ACWA Power advances $1.8bn capital increase plan to boost global expansion, says CFO
RIYADH: Saudi utility giant ACWA Power is moving forward with its SR7 billion ($1.8 billion) capital increase as part of a broader strategy to expand its footprint in energy transformation, water desalination, and green hydrogen production, according to its chief financial officer. In an interview with Al-Ekhbariya, Abdulhameed Al-Muhaidib described the capital raise as a critical step to reinforce the company's leadership both domestically and internationally in sustainable infrastructure. ACWA Power's investment portfolio currently stands at around SR400 billion, encompassing over 78 gigawatts of production capacity and more than 9.5 million cubic meters per day in water desalination capacity. In line with long-term objectives, the company's board approved a plan two years ago to triple assets under management to over SR937.5 billion by 2030. The initiative also aligns with Saudi Arabia's national goal of achieving a balanced energy mix by 2030, targeting an equal split between gas and renewable sources for electricity generation. 'The company decided to increase its capital through a rights issue rather than expanding into debt markets, with the aim of strengthening its financial position and enhancing credit flexibility. A large portion of the proceeds will be used to expand its project portfolio both inside and outside the Kingdom,' said Al-Muhaidib. He noted that 60 percent of ACWA Power's current investments are located in the Kingdom, with the remaining 40 percent spread across international markets. Between 75 percent and 85 percent of the new capital will be allocated to greenfield projects, while acquisitions will account for no more than 20 percent. 'ACWA Power's infrastructure projects rely primarily on debt, with shareholders' equity covering 20 percent to 25 percent of the financing structure. The company will continue this financing strategy while maintaining net debt at approximately SR20 billion, despite the significant growth expected through 2030,' he added. Highlighting the company's geographical expansion, Al-Muhaidib said ACWA Power added new projects worth SR34 billion in 2024 across Saudi Arabia, Egypt, Azerbaijan, Uzbekistan, and China. He also pointed out the firm's active presence in China, with more than 90 employees based in its Shanghai office to support growth in that market. ACWA Power successfully achieved nine financial closings in 2024, amounting to SR34.6 billion. The CFO said a dedicated internal team has been established to streamline project execution from inception to operation. He confirmed that the Capital Market Authority has approved the capital increase, with the final offering price set to be announced during the company's general assembly on June 30. 'Seventy-seven percent of shareholders have submitted their subscription pledges,' Al-Muhaidib noted, adding that the high participation rate underscores investor confidence in the company's long-term strategy. ACWA Power reported a net profit of SR1.75 billion in 2024, a 5.74 percent increase year on year, according to a Tadawul filing issued in February. The gain was attributed to higher revenues from operations and maintenance, increased electricity sales, and improved earnings from equity-accounted investees, capital recycling, and net finance income.
Trade Arabia
11-05-2025
- Business
- Trade Arabia
Acwa Power's Q1 operating income up 117pc
Acwa Power has reported an 117% increase in operating income for the first quarter ended March 31, 2025, reaching SAR 870 million ($231 million). This was primarily due to higher development business and construction management services income. Net profit, attributable to equity holders, reached SAR 427 million, a 44% increase from 2024. "Our financial results for the first three months of 2025 demonstrate the success of the Acwa Power strategy to accelerate new business development across the company. We achieved significant growth in operating income and net profit, underpinned by the foundation we've laid for growing revenue streams," said Marco Arcelli, Chief Executive Officer of Acwa Power. "In Saudi Arabia, we are in an advanced stage of concluding the next giga wave of projects as part of the 2030 renewable energy target of 130 GW as announced by the Ministry of Energy, solidifying our position as a global leader in energy transition and water desalination." Abdulhameed Al Muhaidib, Chief Financial Officer of Acwa Power, said: 'We've delivered strong and encouraging results for the first quarter of the year. This not only reflects Acwa Power's disciplined approach to our growth objectives for 2030 but also demonstrates our focus on sustainable value creation for our shareholders.' Earlier in the year, Acwa Power has announced signing of a share purchase agreement to acquire operational gas power and water desalination assets from Engie, adding 4.6GW of power generation and 1.1 million cubic meters per day of water desalination capacity on its overall portfolio. 'Once this acquisition is complete expected in 2025, we will further strengthen our stable, visible revenue and cash flow streams,' added Al Muhaidib. During the first quarter, the Company added 9.7 GW of energy capacity and 1.4 million m³/day of desalinated water. The portfolio now includes 101 assets with total investment cost of $107 billion and a total gross capacity of 78.9 GW of power generation, 5.3 GWh of BESS, and 9.5 million m³/day of desalinated water production.
Zawya
08-05-2025
- Business
- Zawya
ACWA Power announces its financial results for the first quarter ended 31 March 2025
• 7 additional assets adding 9.7 GW of power and 1.4 million m³/day of water to the portfolio Riyadh, Saudi Arabia: Saudi-listed ACWA Power, the world's largest private water desalination company, and a leader in energy transition and first mover into green hydrogen, announced its interim financial results for the first quarter ended 31 March 2025. Operating income before impairment losses and other expenses increased by 117% reaching SAR 870 million, driven by higher development business and construction management services income, while net profit—attributable to equity holders of the parentreached SAR 427 million for the period, 44% higher compared to the same period in 2024. "Our financial results for the first three months of 2025 demonstrate the success of the ACWA Power strategy to accelerate new business development across the company. We achieved significant growth in operating income and net profit, underpinned by the foundation we've laid for growing revenue streams," said Marco Arcelli, Chief Executive Officer of ACWA Power. "In Saudi Arabia, we are in an advanced stage of concluding the next giga wave of projects as part of the 2030 renewable energy target of 130 GW as announced by the Ministry of Energy, solidifying our position as a global leader in energy transition and water desalination." Abdulhameed Al Muhaidib, Chief Financial Officer of ACWA Power, said: 'We've delivered strong and encouraging results for the first quarter of the year. This not only reflects ACWA Power's disciplined approach to our growth objectives for 2030 but also demonstrates our focus on sustainable value creation for our shareholders.' Earlier in the year, ACWA Power has announced signing of a share purchase agreement to acquire operational gas power and water desalination assets from Engie, adding 4.6GW of power generation and 1.1 million cubic meters per day of water desalination capacity on its overall portfolio. 'Once this acquisition is complete expected in 2025, we will further strengthen our stable, visible revenue and cash flow streams,' added Abdulhameed Al Muhaidib. During the first quarter, the Company added 9.7 GW of energy capacity and 1.4 million m³/day of desalinated water. The portfolio now includes 101 assets with total investment cost of USD 107 billion and a total gross capacity of 78.9 GW of power generation, 5.3 GWh of BESS, and 9.5 million m³/day of desalinated water production. Additionally, the Company achieved key milestones as 4 projects come into operation, namely, the 2.1 GW Al Shuaiba 2 and the 91 MW Layla Solar PV IPPs in Saudi Arabia, along with the 500MW each Bash and Dzhankeldy wind IPPs in Uzbekistan. The Noor 3 CSP also resumed operations subsequently in April following an extended outage that was experienced last year. ACWA Power's interim financial statements for the first quarter ended 31 Mar 2025 issued by KPMG Professional Services (the company's Certified Public Accountants), along with the Investor Report including a management's discussion and analysis on the financial results, are available on the company's Investor Relations page at The company will host a conference call discussing financial results and business updates on Thursday 8 May 2025 at 17:30 KSA / 14:30 GMT. About ACWA Power ACWA Power (TADAWUL:2082) is a Saudi-listed company and the world's largest private water desalination company, the first mover into green hydrogen, and a leader in energy transition. Registered and established in 2004 in Riyadh, Saudi Arabia, ACWA Power employs over 4,000 people and is currently present in 14 countries in the Middle East, Africa, Central Asia, and Southeast Asia. ACWA Power's portfolio comprises 101 projects in operation, advanced development, or under construction with an investment value of SAR 381 billion (USD 107.5 billion) and the capacity to generate 78.89GW of power and manage 9.5 million m3/day of desalinated water per day. This energy and water are delivered on a bulk basis to address the needs of state utilities and industries on long-term, off-taker contracts under utility services outsourcing and public-private partnership models. Learn more: ACWA Power Media contacts: Mohammed Al Hasan; Media Lead – Media Affairs & External Comms Moalhasan@ Investor Relations contacts: Jihad Almohanna, Director – Investor Relations jalmohanna@
