Takween Advanced Industries Unveils Capital Restructuring Plan

24/06/2026 13:58 AST

Takween Advanced Industries (Tadawul: 1201) has announced that its Board of Directors, in a meeting held on June 23, 2026, resolved to recommend a significant restructuring of the company's capital. The plan involves a reduction of the share capital followed by an increase through a rights issue offering.

The company's capital will be reduced from SAR 764.6 million to SAR 245.2 million, representing a 67.92% decrease. This reduction will be achieved by canceling 51,937,800 shares, equivalent to 0.67924 shares for every share held. The move aims to offset accumulated losses of SAR 519.4 million and optimize the capital structure in line with Takween's financial position. Importantly, the company emphasized that the reduction will not have any material adverse impact on its obligations, operations, or regulatory standing.

Following the capital reduction, the Board has also recommended a capital increase of SAR 400 million through a rights issue offering. The proceeds are intended to strengthen Takween's financial position, support liquidity and working capital requirements, settle part of its financial obligations to banks, and enable the execution of future operational and strategic plans.

Eligibility to subscribe will be granted to shareholders registered at the Securities Depository Center (Edaa) at the end of the second trading day following the Extraordinary General Assembly's approval.

The Board noted that the recommendations remain subject to approval by the Capital Market Authority, relevant regulatory bodies, and the Extraordinary General Assembly. As of the announcement date, Takween has not yet appointed a financial advisor nor submitted the capital reduction application to the CMA. The company pledged to disclose material developments in accordance with applicable regulations.

This dual move - reducing capital to address accumulated losses and subsequently raising funds through a rights issue - marks a pivotal step in Takween's efforts to stabilize its financial base and position itself for sustainable growth.

Borsatalkhaleej