Riyadh – Mubasher: Nomu - Parallel Market will launch on 26 February by listing and trading on seven companies.
The Saudi Stock Exchange (Tadawul) said that each of the seven listed firms has to have a fluctuation limit of 20%, according to a bourse filing.
The seven companies are Abdullah Saad Mohammed Abo Moati Stationaries Co., Development Works for Food Co., Baazeem Trading Co., Alsamaani Factory for Metal Industries Co., Al-Omran Industrial and Trading Co., Raydan Cuisines & Restaurants Co., and Arab Sea Information Systems Co.
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 on 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 in 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 Capital Market Authority (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.
