Dar Almarkabah recommends reverse split after share price falls below Tadawul threshold
Dar Almarkabah for Renting Cars Co. is moving to consolidate its shares after its average closing price stayed below SAR 1 for 15 consecutive trading days ending on 13 August 2026. The board recommends a 1-for-20 reverse split that would reduce the number of shares to 2.5 million while keeping capital unchanged at SAR 25 million.
Highlights
- Dar Almarkabah's board proposed a 1-for-20 reverse share split after its average closing price stayed below SAR 1 during the monitoring period.
- The proposed reverse split would increase nominal share value to SAR 10, reduce total shares to 2,500,000, and maintain share capital at SAR 25,000,000.
- Reverse split and bylaw amendments require approval from the Extraordinary General Assembly and regulators, with meeting details to be announced later.
Board proposal and share structure changes
As reported by Saudi Exchange, the company's board issued a resolution by circulation on 28 September 2026 recommending that the Extraordinary General Assembly approve a reverse split following the earlier notification published on 16 August 2026. The move comes after Dar Almarkabah said its average closing share price had remained below SAR 1 for the required monitoring period.Under the proposal, the nominal value of each share would rise to SAR 10 from SAR 0.50 at a ratio of one share for every 20 shares. That would cut the total number of shares to 2,500,000 from 50,000,000, while the company's share capital would remain unchanged at SAR 25,000,000.
The board also recommends amending Article 6 of the company's bylaws to reflect the revised share capital structure. It approved a mechanism to handle fractional shares resulting from the consolidation in line with applicable laws and regulations, with the outcome to be communicated to shareholders.
Regulatory process and market implications
The recommendation still requires approval from the Extraordinary General Assembly as well as the necessary regulatory clearances. Dar Almarkabah says details of the shareholder meeting will be announced later.Reverse splits are typically used by listed companies to raise the per-share trading price without changing overall capital, particularly when exchange rules or market perception put pressure on low-priced stocks. In this case, the proposal follows the company's disclosure that its shares had traded below the SAR 1 threshold for an extended period on Saudi Tadawul.
Our earlier article covered the late-September 2026 NSE listings of Varmora Granito Limited and GSPL Transmission Limited and the trading conditions set for their first days on the exchange. We noted the required framework such as compulsory demat and rolling settlement, and explained that GSPL Transmission would initially trade in the BE series before moving to the EQ series under applicable regulations.
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