Riyadh – Mubasher: Tabuk Agricultural Development Company (TADCO) has officially submitted its application file to the Capital Market Authority (CMA) to seek approval for a significant reduction in its share capital.

The move was announced on 17 June 2026 after a series of board recommendations aimed at restructuring the company’s financial position and addressing its accumulated losses, according to a bourse filing.

The submission marks a formal step in the company’s strategic plan to recalibrate its balance sheet. According to the regulatory filing, TADCO intends to reduce its capital from SAR 391.76 million to SAR 76.52 million.

The capital cut represents a total reduction of SAR 315.24 million, effectively decreasing the company’s capital by approximately 80%.

The reduction will be executed through the cancellation of 31.52 million ordinary shares. The company clarified that the primary objective behind this capital restructuring is to write off accumulated losses, a common financial maneuver used by listed entities to improve fiscal health and meet regulatory requirements regarding capital adequacy.

This formal application follows an initial recommendation by the Board of Directors first announced on 1 April 2026, and a subsequent amendment to that recommendation published on 12 May 2026.

By submitting the file on 17 June 2026, TADCO has now entered the regulatory review phase with the CMA.

The company emphasized that the proposed capital reduction remains subject to several layers of approval. Beyond the necessary endorsement from the CMA, the plan must also receive the final go-ahead from the company’s Extraordinary General Assembly.

Shareholders will eventually be required to vote on the measure during a meeting that will be scheduled once the regulatory authorities have completed their review of the application.

Tabuk Agricultural Development Company has committed to maintaining transparency throughout this process, stating that it will update the market and its shareholders on any future developments as they occur.

Until the CMA issues its decision and the Extraordinary General Assembly convenes, the company’s current capital structure remains in place.

TADCO’s board earlier recommended decreasing the capital by 77.41%, based on the financial results for 2025.