BAAN offsets accumulated losses

The company said in a statement on Tadawul that it has completed the implementation of its previously announced strategic plan to address and eliminate its accumulated losses. The move is part of its ongoing efforts to strengthen its financial position, improve its capital structure, and support the sustainability of its operations and future expansion plans.

This followed the successful completion of its capital increase aimed at acquiring real estate assets owned by Al Hokair Group and Al Oula Real Estate Development Co.

BAAN noted that it is no longer classified among companies with accumulated losses of 20% or more of their capital. Accordingly, the company will complete any necessary procedures with the relevant authorities to remove the accumulated losses flag from the Saudi Exchange’s Tadawul screen, as the reasons for its appearance no longer exist.

This major transformation reflects the successful implementation of its capital restructuring program and the improvement of its financial structure. This strengthened the company's financial position, enhanced capital efficiency, and enabled it to utilize the acquired real estate assets and implement its operational and expansion strategy more effectively.

Completing the acquisition of the real estate assets and eliminating the accumulated losses represents an important milestone in the company's efforts to strengthen financial sustainability and achieve sustainable growth, supporting its ability to expand its business and maximize long-term shareholder value.

According to Argaam data, BAAN's accumulated losses stood at SAR 263.6 million, or 83.7% of its capital, at the end of Q1 2026.

BAAN announced in May its plan to address and fully eliminate its accumulated losses before the end of Q2 2026.

The company’s shareholders approved in June the transfer of SAR 263.64 million from the share premium account arising from the capital increase to the accumulated losses account, to eliminate the accumulated losses, and authorized the board of directors to complete the related regulatory and accounting requirements.

To view auditor's report, click here.