Saudi packaging business Takween Advanced Industries has appointed Albilad Capital to run a SR400m (US$106.4m) rights issue.

Proceeds exceed its SR355.5m market capitalisation and will be used to reduce leverage and provide working capital.

Prior to the rights issue the company also plans to carry out a capital reduction to offset accumulated losses totalling SR519.4m.

The 67.9% reduction will leave the company with 24.5m shares outstanding and was approved on June 23 by Takween's board alongside the rights issue. The plan remains subject to shareholder and Capital Market Authority approval.

The company’s SR300m rights issue in 2024 was also preceded by a capital reduction.

Revenue in 2025 fell 10.4% to SR601.6m while losses widened to SR202m from SR75.8m due to lower sales and higher finance costs.

Its outstanding borrowing at the end of 2025 was SR595.6m.

Shares ended the week at SR4.65 and are down 23.7% year to date.

Source: IFR Takween appoints adviser for latest capital raise | IFR