Riyadh - Mubasher: Takween Advanced Industries Company has announced a comprehensive strategic plan to restructure its financial position through a two-stage capital adjustment process.

Following a Board of Directors meeting held on 23 June 2026, the company recommended a substantial 67.92% reduction in share capital to eliminate accumulated losses, to be followed immediately by a SAR 400 million capital increase through a rights issue.

The proposal, which aims to stabilize the company’s balance sheet and fund future operational requirements, remains subject to the approval of the Capital Market Authority (CMA) and the company’s extraordinary general assembly.

The restructuring initiative begins with a significant contraction of the company’s current equity base. Takween’s board has proposed lowering the share capital from SAR 764.64 million to SAR 245.26 million.

This reduction involves the cancellation of 51.93 million shares, effectively bringing the total number of outstanding shares down from 76.46 million to 24.52 million.

Under the current proposal, shareholders will see approximately 0.67 shares cancelled for every single share held.

According to the disclosure, the primary driver behind this capital reduction is the need to extinguish SAR 519.37 million in accumulated losses.

By wiping these losses from the books, the company intends to improve its capital structure and align its financial standing with its current economic realities.

Management has clarified that this accounting maneuver is not expected to have a material negative impact on the company's existing debt obligations, ongoing operations, or overall organizational performance.

The timeline for the reduction is set for the end of the second trading day following the extraordinary general assembly meeting in which the resolution is passed.

As of the announcement date, Takween has not yet appointed a financial advisor for the reduction process, nor has it submitted the formal application file to the CMA.

Upon the successful completion of the capital reduction, the Board intends to pivot toward growth and liquidity through a massive capital injection. The proposed rights issue is valued at SAR 400 million.

The company has identified several critical objectives for these new funds, including the reinforcement of its financial position, the support of working capital and liquidity, and the settlement of a portion of its outstanding financial liabilities to banks.

Furthermore, the capital increase is designed to provide the necessary fiscal headroom for Takween to execute its future strategic and operational plans.

Eligibility for the rights issue will be granted to shareholders who own stock on the day of the extraordinary general assembly that approves the increase, provided they are registered in the company’s records at the Securities Depository Center (Edaa) by the end of the second trading day following that meeting.