AI Summary
Logo of Tabuk Agricultural Development Co. (TADCO)
Tabuk Agricultural Development Co.’s (TADCO) board of directors decided today, May 12, to amend its capital reduction recommendation from 77.41% to 80.47%.
In a statement to Tadawul, the company explained that the amendments followed the interim financial results for Q1 2026. It aims to restructure the company's capital to offset accumulated losses worth SAR 315.24 million by writing off 31.52 million ordinary shares, or a 0.8047 share for each existing share.
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Capital Reduction Details |
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Current Capital |
SAR 391.77 mln |
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Number of Shares |
39.18 mln |
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Percentage of Reduction |
80.47% |
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New Capital |
SAR 76.52 mln |
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New Number of Shares |
7.65 mln |
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Method |
Canceling 31.52 mln shares; 0.8047 share will be reduced for every 1 share held. |
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Reason |
Restructuring capital to amortize SAR 315.24 mln in accumulated losses. |
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Date of Reduction |
End of the second trading day following the EGM approving the capital reduction |
The company also highlighted that there is no material impact of the planned capital reduction on its current obligations, operations, and financials, and its governance. It noted that Wasatah Capital will act financial advisor, as previously disclosed.
Moreover, TADCO said it will announce an invitation to its shareholders to attend an EGM to vote on the board of directors’ recommendation once all the necessary regulatory approvals have been obtained.
According to Argaam's data, TADCO's board proposed, on April 1, reducing capital by 77.41% from SAR 391.77 million to SAR 88.48 million to amortize accumulated losses.
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