Takween recommends 67.92% capital cut, SAR 400M rights issue

This is part of a capital restructuring plan aimed at offsetting accumulated losses of SAR 519.38 million and improving the company's capital structure in line with its financial position.

In a statement to Tadawul, the company said the recommendation remains subject to approval by the Capital Market Authority, other relevant authorities, and the extraordinary general meeting (EGM).

Takween noted that no material adverse impact is expected on its obligations, operations, or financial, operational, and regulatory performance as a result of the capital reduction.

The company added that it has not yet appointed a financial advisor to manage the capital reduction and has not submitted a capital reduction application to the CMA. It pledged to disclose any material developments in due course.

Following completion of the capital reduction, the board also recommended increasing the company’s capital through a SAR 400 million rights issue.

According to the company, the proposed capital increase aims to strengthen its financial position, support liquidity and working capital, repay part of its bank obligations, and enable the execution of its future operational and strategic plans.

Shareholders of record on the EGM date and those registered with Edaa by the end of the second trading day following the meeting will be eligible for the rights issue.

The rights issue remains subject to approvals from the relevant regulatory authorities and shareholders. The company said it will announce any material developments and disclose when the capital increase application is submitted to the CMA.