Riyadh – Mubasher: Takween Advanced Industries Company swung to net losses after Zakat and tax worth SAR 158.91 million in 2022, against profits of SAR 19.02 million in 2021.
The loss per share hit SAR 1.67 last year, versus earnings per share (EPS) of SAR 0.20 in 2021, according to the annual financial results.
Revenues amounted to SAR 1.04 billion in 2022, higher by 24.67% year-on-year (YoY) than SAR 838.55 million.
Accumulated Losses
Takween reported accumulated losses worth SAR 459.60 million as of 31 December 2022, equivalent to 48.38% of the SAR 950 million capital.
Capital Change
The board members recommended, on 13 March, a capital cut to SAR 490.40 million from SAR 950 million through the cancellation of 45.95 million shares.
The Tadawul-listed firm indicated that one share will be reduced for every 2.06 shares, adding that the number of shares will reach 49.04 million, instead of 95 million shares.
Meanwhile, the 48.38% capital reduction aims to restructure the company's capital in order to write off the incurred accumulated losses.
During the same board meeting, the members also suggested increasing the capital by 61.17% through a rights issue worth SAR 300 million.
The new capital will stand at SAR 790.40 million distributed over 79.04 million shares, compared with SAR 490.40 million and 49.04 million shares, prior to the raise.
The hike process aligns with the Saudi firm’s growth strategy to finance its working capital and purchase new machinery to enlarge sales.
Wasatah Capital is the financial advisor and underwriter for both the capital reduction and increase transactions.
The board’s two proposals are subject to the approval of the extraordinary general meeting (EGM).
In the first nine months (9M) of 2022, Takween shifted to net losses after Zakat and tax worth SAR 45.85 million, versus net profits of SAR 50.36 million during the January-September 2021 period.
