Takween starts rights trading, subscription to new shares today

Logo of Takween Advanced Industries Co.

Takween Advanced Industries Co. starts today, Feb. 19, subscription to new shares and rights trading to increase its capital by SAR 300 million from SAR 464.65 million to SAR 764.65 million.

Rights trading will end on Feb. 27, while subscription to the new shares will close on March 3.

The company will offer 30 million shares at SAR 10 each, to increase capital by 64.75%, at 0.6456 right for every share owned.

The proceeds will go for the purchase of new assets to develop the current production lines, purchase of new assets to manufacture new products, repay loans and finance working capital.

According to data compiled by Argaam, Takween’s shareholders approved, on Feb. 13, the board’s recommendation to increase capital via a SAR 300 million rights issue.

Rightholders may exercise their subscription right, in whole or in part, to the new shares in proportion to the rights existing in their portfolios. For registered shareholders and new investors, rights trading and new shares subscription will be as per the prospectus.

Any unsubscribed shares and fractional shares will be offered to institutional investors, in accordance with the details set in the prospectus. Wasatah Capital will underwrite the new shares that remain unsubscribed after the rump offering.