Takween Reports Significant Reduction in Accumulated Losses to 29.53% of Capita

Takween Advanced Industries Co. disclosed on Wednesday, April 30, 2024, its preliminary financial results for the first quarter ending on March 31, 2024. The company announced a notable decrease in accumulated losses from 42% on December 31, 2023, to 29.53% on March 31, 2024, relative to the company’s current capital of 764.6 million Saudi riyals. The amount of accumulated losses stood at SAR 225.8 million.

Takween attributed this reduction in accumulated losses to strategic measures implemented by the company. These measures included the approval of an increase in the company’s capital by 300 million Saudi riyals through a priority rights offering, in line with the recommendation of the Board of Directors during its meeting in March 2023. The extraordinary general assembly held on February 13, 2024, approved the proposed increase, and all regulatory procedures for capital augmentation were finalized in March 2024.

As outlined in the prospectus for the capital increase, Takween intends to utilize the proceeds for various purposes, including the acquisition of new machinery and equipment, development of existing production lines, loan repayment, and financing working capital. These initiatives aim to mitigate and reduce accumulated losses, thereby enhancing the company’s overall financial position.