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Become an Issuer


Being the largest (by market capitalization) and the most liquid stock market in the Middle East and North Africa, the Saudi Exchange offers issuers the ability to grow their capital with confidence through facilitating trading in different securities such as equities, Sukuk& Bonds, ETFs, REITs, CEFs, and Derivatives.

How To Become An Issuer:

For the Main Market:

In order to be eligible to issue any type of security, general conditions as well as securities-specific conditions should be met.

General Conditions Relating to Issuers as Outlined in the Listing Rules issued by the CMA:

  • The issuer must be a joint stock company.
  • The issuer must have been carrying on, either by itself or through one or more of its subsidiaries, a main activity for at least 3 financial years under substantially the same management.
  • The issuer must have published its audited financial statements covering at least the previous 3 financial years, prepared in accordance with the accounting standards approved by SOCPA.
  • If the issuer has undergone restructuring, 1 financial year must elapse since the date of completion of the restructuring before it will be eligible to issue any securities. 
  • The senior executives of the issuer must have appropriate expertise and experience for the management of the issuers business. 
  • An issuer must have, on its own or with its subsidiaries, sufficient working capital for the 12 months immediately following the date of the publication of the prospectus.
  • The issuer must provide the Authority with reviewed interim financial statements if such statements were issued during the application period.

FOR NOMU - PARALLEL MARKET:

As an alternative platform for companies to go public and list its shares on the exchange, Nomu - Parallel Market was designed to absorb companies that do not immediately meet the Main Market requirements to access equity financing. As such, the admission requirements on how to become an issuer differ from that of the Main Market as follows:

The Offering & Listing process takes the following criteria into consideration:

  • The issuer must be a joint stock company.
  • Minimum market cap of SAR 10 million.
  • The issuer must float at least 20% of the issued shares, or SAR 30 million worth of shares in the market, whichever is less.
  • Minimum 1 year of operational and financial performance.
  • Appointing a financial advisor is mandatory, legal advisor is optional.
  • Annual audited financial statements.
  • Semi-annual reviewed financial statements.
  • Disclosure of significant/essential information.
  • No profitability track record required.
  • Lock up Period: 100% of pre-offering investor shares for one year.
  • At least 50 public shareholders are required at the time of listing.

Some of the main differences worth highlighting:

  Main Market Nomu - Parallel Market
Minimum Market Cap SAR 300 million SAR 10 million
% Offered At least 30%
  • At least 20% of the issued shares
  • Or floating SAR 30 million worth of shares in the market, whichever is less
Public Shareholders At least 200

At least 50

Continuous Obligations

Standard disclosure requirements.

Disclosure of quarterly financial statements within 30 calendar days from the end of the period and year-end financial statements within 3 months from the end of the period

Lighter financial disclosure requirements than the Main Market (with regards to time permissible to disclose):

  • Disclosure of semi-annual financial statements within 45 calendar days from the end of the period.
  • Year-end financial statements within 3 months from the end of the period
Daily Price Fluctuation Limits

Daily Price Fluctuation Limits is ±30% based on the previous day closing price or the listing price in the case of the first day of trading after listing.

±30% is applicable only during the first 3 days of trading newly listed Equities, Real Estate Investment Traded Funds and Closed-ended Investment Traded Funds.

On the fourth day of trading:
The Daily Price Fluctuation Limit will revert to ±10%.

Daily Price Fluctuation Limits is ±30% based on the previous day closing price or the listing price in the case of the first day of trading after listing.


±30% Daily Price Fluctuation Limits applies to all listed securities on Nomu.

Static Price Fluctuation Limits

Static Price Fluctuation Limits to be set at ±10% for the first three days of trading newly listed Equities, Real Estate Investment Traded Funds and Closed-ended Investment Traded Funds.

On the fourth day of trading:
No Static Price Fluctuation Limit is applied.

Static Price Fluctuation Limits of ±10% will apply on an ongoing basis for all listed securities on Nomu.

For more details, please refer to Nomu - Parallel Market Listing Rules issued by the Capital Market Authority (CMA). Click Here.

For more information on how to become an issuer in Nomu - Parallel Market, please call us at +966 92000 1919. You may also contact us via email at Listing@tadawul.com.sa

 

Dual Listing of Shares by Non-Saudi Issuers:

Companies when going public through an IPO and Listing may want to seek to access more than one capital market.  A so-called dual listing occurs when a company lists on a stock exchange outside the home market and through these accesses an additional capital market.

A dual listing can take place concurrently when a company goes public for the first time on two markets.  Alternatively, a company can be listed already and subsequently seeks a second listing to complement its existing listing.

In order to facilitate dual listings by non-Saudi companies on its market, the Saudi Exchange has stablished, in collaboration with Edaa, links with other capital markets in the region

Through a dual listing companies have the opportunity to gain access to an additional pool of investors, including Saudi retail and institutional as well as leading international institutional investors that are classified as Qualified Foreign Investors.

Once dual listed on the Saudi Exchange, a non-Saudi Issuer’s shares will be traded in SAR alongside other Saudi listed Issuers and benefit from our state of the art trading, clearing and settlement market infrastructure.

Possible Advantages of a Dual Listing to Non-Saudi Companies:

  • Amplify an issuer’s public profile and corporate brand
  • Increase comparability with peers from the same industry sector
  • Attract additional investment research coverage
  • Access a complementary and diverse pool of capital across markets
  • Enable increased liquidity in the shares and extended trading times
  • Increased diversification to the shareholder base
  • Eligibility for TASI Index inclusion and potentially other international indices


Possible Advantages of Dual Listing to Investors:

  • Ability for investors to invest in a larger pool of issuers from outside the Saudi market
  • Opportunity to invest in a non-Saudi company but that is subject to CMA regulatory oversight
  • Ability to trade in shares of a non-Saudi company in the investors home market currency – SAR
  • Ability to trade in two markets for investors with access to multiple markets

 

For more information on dual listing and to discuss accessing the Saudi Exchange as a non-Saudi issuer, please contact international@saudiexchange.sa to request a meeting accordingly.