Capital Market Authority Approves Tabuk Agricultural's Request to Reduce Capital by 80.5%

Logo of Tabuk Agricultural Development Company

The Capital Market Authority announced its decision approving the request of Tabuk Agricultural Development Company to reduce its capital from SAR 391.77 million to SAR 76.52 million, thereby reducing the number of shares from 39.18 million to 7.65 million.

The authority stated in a press release that this approval is conditional on the approval of the company's extraordinary general assembly and the completion of relevant regulatory procedures and requirements.

It also clarified that the company will publish a report prepared by it containing the proposed method for capital reduction and its expected effects before the extraordinary general assembly convenes, in sufficient time to allow shareholders to vote on the capital reduction decision.

It pointed out that the authority's approval of the company's request to reduce its capital should not be considered as an endorsement of the feasibility of the capital reduction, as the authority's decision to approve the company's request means that the regulatory requirements have been met according to the Capital Market Law and its implementing regulations.

According to Argaam data, in May 2026, Tabuk Agricultural decided to submit a new recommendation to the extraordinary general assembly to reduce the company's capital to 80.47% instead of 77.41%, as follows:

Capital Reduction Details

Current Capital

SAR 391.77 million

Number of Shares

39.18 million shares

Reduction Percentage

80.47%

Capital After Reduction

SAR 76.52 million

Number of Shares After Reduction

7.65 million shares

Method of Capital Reduction

Cancellation of 31.52 million ordinary shares, i.e., a cancellation rate of 0.8047 shares per owned share

Reason for Reduction

Restructuring the company's capital to write off an amount of SAR 315.24 million in accumulated losses

Reduction Date

End of the second trading day following the extraordinary general assembly that decides on the capital reduction

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