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The Saudi Stock Exchange “Tadawul” is preparing to list 7 companies on Nomu - Parallel Market on 26 of February, after gaining approval from the CMA and completing all required listing procedures.
Nomu - Parallel Market is an alternative trading platform with lighter listing requirements compared to the Main Market, requiring a market value of at least 10 million SAR, minimum shareholder size of 35-50 shareholders, and an offering percentage of at least 20%.
Moreover, Nomu - Parallel Market opens new investment possibilities for listed companies in terms of diversifying funding resources to further increase growth and business development. Listed companies on Nomu - Parallel Market are also obligated to adopt best management and financial practices and apply governance and disclosure standards. This uplifts the company’s profile, increases brand equity and market value, ultimately leading to increased investor and client confidence.
Tadawul has announced that direct trading in Nomu - Parallel Market is allowed for institutions. Direct trading is also allowed for individuals who are classified as “Qualified Investors”, provided meeting one of the following criteria:
- Conducting transactions in security markets of not less than 40 million SAR in total, and not less than 10 transactions in each quarter during the last twelve months; or
- Average size of securities portfolio exceeds 10 million SAR during the last twelve months; or
- Holding the General Securities Qualification Certificate (CME-1) which is certified by the CMA.
On the other hand, individuals are allowed to indirectly trade in Numo-Parallel Market through investment funds or portfolios managed by authorized persons by the CMA.
it is worth mentioning that the Saudi Stock Exchange “Tadawul” has announced in April 2016 its plan to launch a new Parallel Market in Saudi Arabia. Since then, “Tadawul” teams have been working on execution plans including awareness workshops targeting financial advisors, companies interested in being listed on Nomu, and investors, in addition to a roadshow with various visits to chambers of commerce and other related institutions around the country.
