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TADCO cuts capital 80.5% to wipe out SAR 315 mln in losses
TADCO published its circular for an 80.5% capital reduction to SAR 76.5 million, cancelling 31.52 million shares to offset SAR 315.24 million in accumulated losses. EGM approval is required before Tadawul suspension.
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Tabuk Agricultural Development Co. (TADCO) published its shareholders' circular for an 80.5% capital reduction, cutting the base from SAR 391.8 million to SAR 76.5 million. The move cancels 31.52 million ordinary shares at a ratio of one share for every 1.24 outstanding.
The Capital Market Authority approved the plan on July 23, conditional on an extraordinary general meeting vote. Without EGM approval, the process halts.
Tadawul will suspend trading for two consecutive sessions starting the day after the EGM approves the reduction. Trading resumes at the adjusted share price. The reduction becomes effective with shareholder records held by the Securities Depository Center Co. (Edaa) at the end of trading on the second day following the EGM.