The Saudi Exchange announced today the eligibility of Special Purpose Acquisition Companies (“SPACs”) for listing on Nomu – Parallel Market, which provides an additional listing route for fast-growing businesses and SMEs, unlocking early-stage capital, and creating new opportunities for investors.
A Special Purpose Acquisition Company (“SPAC”) is a company created to raise capital through an Initial Public Offering (IPO) for the purpose of acquiring or merging with a private company. This structure provides an alternative route to public markets, which can facilitate faster access to capital, and is a model well-suited to high-growth and innovative businesses seeking to scale rapidly.
In accordance with the regulatory framework, SPACs are required to complete an acquisition within a 24-month period from the date of listing, which may be extended to 36 months subject to the approval of the Capital Market Authority (CMA). Throughout this period, the shares of the SPAC will be actively traded on the market, providing liquidity and enabling continuous investor participation This launch is part of the Saudi Exchange’s strategy to diversify its offerings of listing products and investment opportunities. Through this new track, the Saudi Exchange aims to expand the investor base in Nomu – Parallel Market, attract new categories of issuers, and strengthen the ability of the Saudi capital market to offer leading and innovative products and services.
Mr. Mohammed Al Rumaih, CEO of the Saudi Exchange, commented: "Introducing SPACs on Nomu – Parallel Market is another milestone in the evolution of the Saudi capital market. This sponsor-led structure provides companies with faster, more flexible access to capital while giving qualified investors early access to high-potential businesses. By expanding listing routes while ensuring investor protection, we are aligning with global best practices and reinforcing our mission to support the Saudi Vision 2030.”
The introduction of SPACs underscores the Saudi Exchange’s role as a catalyst for capital market development and product innovation. By expanding access for issuers and investors alike, the Saudi Exchange continues to foster a more dynamic, inclusive, and competitive market.
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