Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) is preparing to list seven companies on Nomu - Parallel Market on 26 February.
The firms will be listed after obtaining approval from the Capital Market Authority (CMA) and completing all the listing procedures, according to a bourse filing on Monday.
Listing on Nomu requires a market value of at least SAR 10 million, a minimum of 35 – 50 shareholders, and an offering percentage of at least 20%, so it is considered an alternative trading platform with lighter listing requirements compared to the main market.
Moreover, the parallel market opens new investment possibilities for listed companies in terms of diversifying funding resources to further increase growth and business development, the statement said.
Listed companies on Nomu are also obligated to adopt best management and financial practices and apply governance and disclosure standards, which will uplift the company’s profile, increase brand equity and market value, and ultimately lead to increased investor and client confidence.
Tadawul announced that direct trading in Nomu is allowed for institutions and individuals who are classified as “Qualified Investors,” provided they meet a set of eligibility criteria.
Investors should have conducted transactions in security markets of not less than SAR 40 million in total, and not less than SAR 10 million transactions in each quarter during the last twelve months to be able to directly trade.
Individuals are also allowed to indirectly trade in the parallel market through investment funds or portfolios managed by persons authorised by the CMA, the statement added.
In April, Tadawul announced its plan to launch a new parallel market and since then, its team has been working on executing plans including awareness workshops targeting financial advisors, companies interested in being listed on Nomu, and investors.
Besides, Tadawul conducted a roadshow with various visits to chambers of commerce and other related institutions around the country to promote for the new market.
