(Bloomberg) -- Saudi Arabia’s Acwa Power Co. is planning to raise 7.1 billion riyals ($1.9 billion) by issuing stock to existing shareholders, capitalizing on a 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 said in a filing Tuesday. It’s expanding into China as part of a global push into renewables and green hydrogen, while also boosting projects at home. Acwa also operates power stations that run on oil and gas, and water desalination projects.

The company sees spending on projects growing to as much as $2.5 billion annually through to the end of the decade from a previous range of $1 billion to $1.3 billion. Acwa’s shares have increased about 570% since it listed in October 2021. The stock dropped as much as 8% on Tuesday, paring this year’s gains.

Acwa Power’s fund raising comes days after the government raised $11.2 billion selling shares in oil giant Saudi Aramco. Acwa Power is a key part of the kingdom’s plans to neutralize carbon emissions by 2060 with it’s push into solar, wind and green hydrogen projects. 

The Saudi sovereign wealth fund, Public Investment Fund, owns 44% of the utility.

(Updates with shares in the third paragraph.)

©2024 Bloomberg L.P.