Saudi Arabian food business Savola Group reported 94.15% take-up for its SR6bn (US$1.6bn) rights issue, with proceeds used to cut debt.

In total, there were acceptances for 564.9m out of 600m new shares offered on a 1.1236-for-1 basis at SR10 each. The balance of 35.1m shares will be offered as a rump placing on Sunday.

The offering was two-thirds underwritten by Riyad Capital and one-third by ANB Capital.

The shares traded between SR26.60 and SR28.20 throughout subscription.

Following completion of the rights issue, Savola will distribute its 34.52% shareholding in listed dairy, bakery and poultry company Almarai that is valued at SR18.6bn.

Savola shares were trading at SR28.50 at 1pm in London on Thursday.

Source: IFR