Riyadh – Mubasher: BAAN Holding Group has announced a comprehensive strategic plan to fully extinguish its accumulated losses before the end of the second quarter (Q2) of 2026, according to a bourse filing.
This financial restructuring initiative follows a significant capital increase and is intended to strengthen the company’s balance sheet, improve solvency indicators, and provide a stable foundation for future operational expansion and business sustainability.
The strategic plan represents a pivotal phase in BAAN Holding’s broader capital restructuring program, built upon the successful completion of a major capital hike, which was executed to facilitate the acquisition of key real estate assets previously owned by Al Hokair Holding Group and Aloula Real Estate Development Company.
As a result of this transaction, BAAN Holding issued 304.96 million new ordinary shares, effectively raising its total capital from SAR 315 million to SAR 619.96 million.
A critical byproduct of this capital increase was the recording of a share premium amounting to SAR 525.15 million, which represents the difference between the par value of the issued shares and their agreed-upon valuation at the time of the asset acquisition.
To address the company’s current financial challenges, the board of directors has announced its intention to recommend to the extraordinary general assembly the transfer of the entire share premium balance to the company’s retained earnings account.
The step is specifically designed to amortize and fully eliminate the company’s accumulated losses. By utilizing the share premium in this manner, the company aims to reset its financial position, thereby enhancing its creditworthiness and financial flexibility.
BAAN Holding noted that this move is a continuation of its efforts to optimize its financial structure. Meanwhile, the successful elimination of accumulated losses will significantly improve the company’s ability to execute its long-term operational and expansionary strategies.
