Riyadh – Mubasher: Tabuk Agricultural Development Company, known as TADCO, has made an update to its board of directors' recommendation regarding a capital reduction, following the review of financial results for the first quarter (Q1) of 2026.
The board has moved to increase the percentage of the capital write-down to 80.47%, an increase from the previously recommended 77.41%, in a strategic move to extinguish accumulated losses totaling more than SAR 315 million, according to a bourse filing.
The amendment to the capital restructuring plan was finalized during a board meeting on 12 May 2026, a decision that serves as an update to the company’s initial disclosure made on 1 April 2026, where the board had originally suggested a 77.41% capital cut.
The revision was prompted by the preliminary financial results for the three-month period ending 31 March 2026, which necessitated a larger reduction to fully address the company's fiscal position.
Under the updated proposal, TADCO’s capital will be reduced from SAR 391.76 million to SAR 76.52 million.
This restructuring involves the cancellation of 31.52 million ordinary shares, bringing the total number of shares down from 39.17 million to 7.65 million shares.
The reduction will be executed at a rate of 0.8047 shares canceled for every one share currently held by investors.
TADCO clarified that this capital adjustment will not have a material impact on the company's existing liabilities, operations, or overall financial and operational performance.
Furthermore, the regulatory and organizational standing of the company is expected to remain unaffected by the change in share count. The reduction is scheduled to take effect at the close of the second trading day following the extraordinary general meeting (EGM) in which the shareholders approve the proposal.
Wasatah Capital continues to serve as the financial advisor for the transaction, as previously disclosed.
By aligning the capital reduction with the current level of accumulated losses, the company aims to establish a more sustainable financial structure for its future operations on the Saudi Exchange (Tadawul).
