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A trader uses his mobile as he monitors screens displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh June 15, 2015.Faisal Al Nasser
Saudi Arabia’s Capital Market Authority has proposed a new draft to further develop the investor categories on Nomu to give a boost to the parallel market.
The proposed changes aim to ease the criteria and requirements for investors to be eligible to trade and invest in the market.
One of the key changes proposed is a revision of the term ‘Qualified Investor’ on Nomu, which limits investments on the parallel market to certain categories. The amendment will also ease the criteria imposed on individual investors looking to invest on Nomu.
Under the proposed criteria, an investor would be required to have completed transactions amounting to 30 million Saudi riyals ($8 million) during the past 12 months, with the removal of the requirement to execute at least 10 transactions per quarter. Previously, the condition required completing transactions worth SAR 40 million through at least 10 transactions during the past 12 months.
The CMA stated the changes are expected to have a positive impact on the market and has requested interested parties to participate with their feedback on the proposed changes by April 28.
The proposed changes come at a time when Nomu is witnessing a flurry of IPOs. According to Saudi Exchange (Tadawul) data, Nomu witnessed a total of 28 IPOs and three direct listings in 2024, with a total value of SAR 1.1 billion. An EY report stated a dozen of these IPOs were listed in the fourth quarter alone, raising a total of $119 million.
“The last quarter of 2024 was a bumper quarter for the MENA region with 25 IPOs, making up 46% of the total IPO activity in that year. Nomu listings accounted for 50%, indicating robust activity in the junior Saudi market,” Gregory Hughes, EY MENA IPO and Transaction Diligence Leader, said earlier.
The first quarter of 2025 has seen eight IPO listings on Nomu, according to exchange data, with the latest being Ratio Speciality Company for Trading (RATIO) began trading on March 9.
Others listed this year include Shmoh Almadi Co., ITMAM Consulting, Alshehili for Metal Industries and Twareat Medical Care, Basma Adeem Medical (Smile Care), Lamasat, and Hedab Alkhaleej Trading.
Last week, Marketing Home Group Company, Qudra for Communications and Information Technology Co. and Hawyia Auctions Co. also won approvals to go ahead with a Nomu listing.
(Reporting by Bindu Rai, editing by Seban Scaria)
