Riyadh, Saudi Arabia — Tabuk Agricultural Development Company (TADCO) has submitted an official request to the Capital Market Authority (CMA) to approve its proposed capital reduction of SAR 207.41 million.
In a statement to Saudi Tadawul, TADCO confirmed that the process requires additional regulatory approvals. It also needs shareholder approval through an Extraordinary General Assembly. The company plans to share updates as soon as new developments arise.
Share Impact and Financial Objectives
In April 2025, TADCO’s Board of Directors recommended reducing the company’s capital by SAR 207.41 million. The proposal represents a 52.94% reduction, which would lower the company’s capital to SAR 184.35 million, down from SAR 391.76 million.
The number of shares will decrease from approximately 39.17 million to 18.43 million. This change will happen by canceling around 20.74 million shares, equal to canceling roughly 0.5294 shares for every share owned.
According to the company, the goal of the capital reduction is to restructure finances and eliminate accumulated losses. TADCO believes this step will strengthen its financial position.
The Board appointed Wasata Capital as the financial advisor for the capital restructuring on April 22, 2025.
The Saudi Standard’s View: Capital Reduction Reflects Financial Reset for TADCO
The proposed TADCO capital reduction shows how Saudi companies use capital restructuring to tackle financial challenges. By cutting capital by more than half, TADCO hopes to simplify its structure and improve long-term economic health.
Such reductions are increasingly common among companies, especially those managing legacy losses or weak earnings. For TADCO, the plan may restore confidence by realigning its capital and signaling a fresh start.
Moreover, regulatory oversight from the CMA ensures transparency throughout the process. Investors will likely focus on shareholder approval and whether TADCO can deliver operational improvements after the restructuring.
Explore Saudi capital reduction approvals and how companies restructure to address financial challenges.
Learn more about Saudi agriculture companies and sector performance across the Kingdom.
