‎TADCO publishes shareholders’ circular on 80.5% capital cut

Source: Argaam - Main News
Source link: https://www.argaam.com/en/article/articledetail/id/1926466
Published: 2026-08-05 19:28:00
Discovered by ProcIntel: 2026-08-05 17:49:36
Category: GCC Spotlight
Geography: Saudi Arabia
Organisations: —
Review status: Pending
Record type: REAL

Summary

‎<img src="https://argaamplus.s3.amazonaws.com/6c3c725c-a4df-45c5-95ad-4d1089852057.png" > Logo ofTabuk Agricultural Development Co. (TADCO) <hr> Tabuk Agricultural Development Co. (<a href="https://www.argaam.com/en/tadawul/tasi/tadco" target="_blank">TADCO</a>) published today, Aug. 5, the shareholders’ circular for its capital reduction by 80.5% from SAR 391.8 million to SAR 76.5 million. The Capital Market Authority (CMA) announced, on July 23, its approval of the company's planned capital reduction from SAR 391.77 million to SAR 76.52 million. Consequently, the number of shares will be cut from 39.18 million to 7.65 million. The approval is conditional on the extraordinary general meeting's (EGM) nod, the absence of which will lead to suspending the capital reduction process. The company noted that, if the EGM approves the capital reduction, Tadawul will suspend trading in the company’s shares for two consecutive trading sessions, starting from the day following the EGM’s approval of the capital reduction. Trading will then resume at the adjusted share price. It added that the capital reduction resolution will become effective, with the number of shares held by shareholders who own shares on the date of the EGM being adjusted based on the company’s shareholder records maintained by the Securities Depository Center Co. (Edaa) at the end of trading on the second day following the EGM related to the capital reduction. The company also noted that, if the EGM approves the capital reduction, it will approach the Ministry of Commerce to obtain its approval to amend the company’s Commercial Registration and Articles of Association. The financial advisor is Wasatah Capital. <table align="center" border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr > <td colspan="2" > Capital Cut Details </td> </tr> <tr > <td > Current Capital </td> <td > SAR 391.77 mln </td> </tr> <tr > <td > Current Number of Shares </td> <td > 39.18 mln </td> </tr> <tr > <td > Reduction (%) </td> <td > 80.47% </td> </tr> <tr > <td > New Capital </td> <td > SAR 76.52 mln </td> </tr> <tr > <td > New Number of Shares </td> <td > 7.65 mln </td> </tr> <tr > <td > Method </td> <td > Canceling 31.52 million ordinary shares, at one share for every 1.24 outstanding shares. </td> </tr> <tr > <td > Reason </td> <td > To restructure the company's capital by offsetting SAR 315.24 million in accumulated losses </td> </tr> <tr > <td > Date </td> <td > By the end of the second trading day following the EGM that will decide on the capital cut </td> </tr> <tr > <td > Deposit of Proceeds from the Sale of Fractional Shares Resulting from the Capital Reduction </td> <td > Within 30 days from the date on which shareholders approve the capital reduction at the EGM. </td> </tr> </tbody> </table> <div ></div> <table align="center" border="1" cellpadding="0" cellspacing="0" width="100%"> <tbody> <tr > <td colspan="4" > Impact of the Capital Reduction on Shareholders’ Equity (SAR mln) </td> </tr> <tr > <td > Shareholders’ equity </td> <td > Before capital reduction </td> <td > After capital reduction </td> <td > Impact </td> </tr> <tr > <td > Capital </td> <td > 391.77 </td> <td > 76.52 </td> <td > (315.24) </td> </tr> <tr > <td > Other reserves </td> <td > 1.86 </td> <td > 1.86 </td> <td > -- </td> </tr> <tr > <td > Reserve for remeasuring employee benefit obligations </td> <td > 4.62 </td> <td > 4.62 </td> <td > -- </td> </tr> <tr > <td > Forex translation reserve </td> <td > 7.84 </td> <td > 7.84 </td> <td > -- </td> </tr> <tr > <td > Fair value reserve </td> <td > 0.19 </td> <td > 0.19 </td> <td > -- </td> </tr> <tr > <td > Accumulated losses </td> <td > (315.24) </td> <td > (3) SAR </td> <td > 315.24 </td> </tr> <tr > <td > Non-controlling interests </td> <td > 0.38 </td> <td > 0.38 </td> <td > -- </td> </tr> <tr > <td > Total shareholders’ equity </td> <td > 75.34 </td> <td > 75.34 </td> <td > -- </td> </tr> </tbody> </table>

Procurement Relevance Gate

FAIL — score 7.0/100 — evaluated 2026-08-05 17:49:36

Only geographic exposure matched — no substantive content indicator, so this cannot pass alone.

geographic_exposure (weight 8) — matched on "1 linked geography"

Initial Signal Assessment ProcIntel's automatic, provisional read of this individual Signal -- Initial Significance and Initial Confidence, computed deterministically before any Event extraction or human review.

A provisional, automatically-computed reading of this individual Signal, before Event extraction or human review. Not a final rating.

Not Assessed — this Signal did not pass the Procurement Relevance Gate, or is fictional/excluded test data.

‎TADCO publishes shareholders’ circular on 80.5% capital cut

Summary

Procurement Relevance Gate

Initial Signal Assessment ⓘMore about Initial Signal AssessmentProcIntel's automatic, provisional read of this individual Signal -- Initial Significance and Initial Confidence, computed deterministically before any Event extraction or human review.

Initial Signal Assessment ProcIntel's automatic, provisional read of this individual Signal -- Initial Significance and Initial Confidence, computed deterministically before any Event extraction or human review.