Picanol on course for 15 mln euros in share issue

BRUSSELS, July 6 (Reuters) - Belgian weaving machine maker Picanol (PICB.BR) said on Monday it was on course to raise 15 million euros ($21 million) in an issue of 11.8 million new shares.

The issue, agreed by shareholders in April, was at 1.27 euros per share against a last quoted price on Monday of 1.99 euros.

Investors had the right to buy two new shares for every share held. The initial take-up was 90.9 percent.

Further scrips were sold in a private placement and to Oostrotex, a company controlled by Luc Tack, one of Picanol's core shareholders.

Picanol has given a subdued forecast for 2009 after a 58 percent slide in first-quarter sales. It plans to cut costs by about 20 percent by the end of the year. (Reporting by Philip Blenkinsop; Editing by Dan Lalor) ($1 = 0.7154 euro)