CMA fines BAAN for delay in disclosing material event related to NEOM contract

Logo of BAAN Holding Group Co.

The Capital Market Authority (CMA) imposed a fine of SAR 50,000 on BAAN Holding Group Co., due to its violation of paragraph (a) of Article (78), and paragraph (a) of Article (79) of the Rules on the Offer of Securities and Continuing Obligations, and subparagraph (5) of paragraph (b) of item (2) “Announcement Form for Signing a Contract or Project" of the Instructions for Companies' Announcement regarding contracts of the Instructions for Companies' Announcements . Where the Company fails to oblige to the following:

- Disclose to CMA and the public, immediately and without delay any material developments in its sphere of activity which are not public knowledge, and which may affect the assets and liabilities or financial position, due to the delay in disclosing the awarding of a project to provide catering services at a residential complex in NEOM on Dec. 17, 2023, as the Company did not disclose that on the Saudi Exchange’s (Tadawul) website until Jan. 22, 2024.

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- Disclose completely in its announced published on Aug. 22 2024 on Tadawul's website, regarding signing of the contract for the above-mentioned project, by not disclosing the specified contract period, as the Company did not disclose that until Sept. 11 2024.

According to data available to Argaam, the company announced, in August 2024, it was awarded a project by Alpha Facilities Contracting Co., an affiliate of Al Fanar Group, for presenting catering services at residential complexes in NEOM, at an estimated value of SAR 760 million. In September 2024, the company announced that the duration of the contract would extend for seven years.