Tabuk Agricultural has approved an 80% reduction in its share capital. The company will cut its capital from SAR 391.7 million to SAR 76.5 million. Shareholders approved the proposal during an Extraordinary General Assembly meeting. The company said the move aims to restructure its capital. It will also help offset accumulated losses recorded by the business. Tabuk Agricultural will reduce its total shares as part of the restructuring. The number will fall from about 39.1 million shares to 7.6 million shares.
The company will complete the capital reduction through a share cancellation process. It plans to cancel around 31.5 million shares under the approved arrangement. The reduction represents one cancelled share for every 1.24 shares held. The company will apply the reduction to eligible shareholders recorded after the meeting. Shareholders must own the shares on the relevant eligibility date. They must also appear in the official shareholder register. The Securities Depository Center will determine the registered shareholders for the process.
The approved restructuring focuses on strengthening the company’s capital position. It will allow the company to address accumulated losses through the reduction. Moreover, the measure changes the company’s capital structure without changing its core operations. The company also stated that the move will not affect its financial obligations. Therefore, creditors and other financial commitments will remain separate from the capital reduction process.
Tabuk Agricultural will maintain its business operations after completing the restructuring. The company said the decision will not affect its operational performance. It also expects no impact on its organizational structure. In addition, the company said its financial performance will not change because of the reduction. The measure instead focuses on adjusting the relationship between capital and accumulated losses. This gives the company a clearer capital structure following shareholder approval.
The reduction will also change the number of shares available within the company. Existing shareholders will see the number of shares they hold adjusted through cancellation. The company has established a specific ratio for determining the reduction. Consequently, shareholders can calculate the expected impact based on their holdings. The process will follow the approved terms and applicable market procedures.
Tabuk Agricultural will now proceed with the required steps following the assembly’s approval. The relevant shareholder records will determine who qualifies for the reduction. The company will use the designated record date to establish eligibility. Furthermore, the process will follow the applicable requirements for listed companies. These procedures will support the implementation of the approved capital restructuring.
The decision represents a major change in the company’s capital structure. However, the company emphasized that its operations and financial obligations will continue. The capital reduction specifically targets accumulated losses rather than daily business activities. As a result, the company expects its operating activities to continue under the existing structure. Tabuk Agricultural will therefore focus on completing the restructuring according to the approved framework.
