Al-Athel: The number of applications from companies wishing to enter the “Nomu” market has increased after the Corona pandemic by more than 80 percent
The head of the General Administration for Listing – the Saudi Stock Exchange “Tadawul”, Naif Al-Athel, said that the “Nomou” market is a parallel market that has fewer listing requirements. It is also an alternative platform for companies wishing to be listed, and that investment in it is intended for qualified investors.
Al-Athel spoke during a remote meeting organized by the Asharqia Chamber represented by the Young Businessmen Council on Monday evening October 19, 2020, entitled “The Role of the Financial Market in Supporting Small and Medium Enterprises” that the market is allocated to companies whose capital reaches 30 million riyals, indicating that the number of deals in the market It rose to 13 percent, and the number of applications from companies wishing to enter the “growth” market increased after the Corona pandemic by more than 80 percent.
Al-Athel stated during the meeting that the main goal of establishing a growth market is to provide an additional source of financing for companies, increase capital, increase the diversity of available investment tools and deepen the Saudi financial market, pointing out that the market is characterized by more flexible standards and requirements, with the possibility of moving to the main market after taking Regulatory approvals.
Al-Athel explained a number of measures that characterize the market that contributed to creating flexibility for companies, including offering at least 20% of the shares or listing a minimum value of 30 million Saudi riyals for the value of listed shares, whichever is less and changing the period of disclosure of financial statements from Quarterly to semi-annually, indicating that companies wishing to switch from a growth market to the main market have advantages as they can meet the liquidity requirements through the future promise service, as they can fulfill the requirement after the offering, and companies can move to the main market directly with reduced capital from 300 million riyals, which is required for listing in the main market, to 30 million riyals.
Al-Athel revealed that the market is witnessing remarkable prosperity, heading towards its main goal of increasing the number of companies, which positively affects the national economy, as the market recently witnessed the transfer of 7 companies and this is an achievement for the Saudi market and also for the business sector, which interacted with the requirements and was able to arrange its papers and govern its procedures to ensure business Growing and sustainable.
Al-Athel advised family companies to move away from fear and anxiety about transformation and start governing their business before listing, so that they are ready for listing, noting that the companies that were listed have strengthened their position economically and in banks, and have obtained various privileges, stressing that the listing has a major role in the development and sustainability of the company.
Source: Asharqia Chamber