BAAN discloses plan to offset losses before Q2 2026-end

BAAN said this initiative comes within its capital restructuring and financial optimization program

BAAN Holding Group Co. announced a plan to fully eliminate the accumulated losses before the end of Q2 2026, as part of the company’s strategy to strengthen its financial position, enhance financial solvency indicators, and support the sustainability and future expansion of its business operations.

In a Tadawul statement, the company said this initiative builds on the measures undertaken by the company within its capital restructuring and financial optimization program, following the approval of the extraordinary general assembly (EGM) to increase the company’s capital for acquiring real estate assets.

Accordingly, the board of directors intends to recommend to shareholders the transfer of the full balance of the share premium resulting from the capital increase to retained earnings, for the purpose of fully offsetting the company’s accumulated losses, subject to completing the required regulatory procedures and obtaining the relevant approvals.

The company believes that the implementation of this step will contribute to strengthening its financial position, improving the efficiency of its capital structure, and supporting the company’s ability to execute its operational and expansion strategies during the coming phase, the statement added.

BAAN further confirmed that the implementation of this plan remains subject to the completion of the relevant regulatory requirements and approvals, and the company will announce any material developments in due course in accordance with the applicable laws and regulations.

According to data available on Argaam, BAAN’s accumulated losses stood at SAR 263.6 million as of March 31, 2026, representing 83.7% of capital.

In April, the company’s shareholders approved increasing capital to acquire real estate assets. Accordingly, capital rose 96.81% from SAR 315 million to SAR 619.97 million with an issue premium of SAR 525.15 million.