Stock trading begins on Sunday in the Nomu-Parallel Market after the Capital Market Authority agreed to list seven companies which finished the listing procedures during the past phase.
Nomu-Parallel Market is an alternative equity market with lighter listing requirements compared to the main market. It aims to help qualified small and medium-sized companies achieve growth by providing various funding resources.
This will allow companies to expand their businesses and develop their activities, and thus contribute to their growth and sustainability.
Listing in the Parallel Market requires a minimum capitalization of 10 million SAR, which is $2.6 million, and the number of shareholders must range between 35 and 50. They are obliged to list at least 20% of their shares.
The Parallel Market obliges enlisted companies to adopt the best administrative and financial practices and implement disclosure standards. This improves the companies’ reputation and their market value and thus positively affects investors’ and clients’ trust.
Nomu, or the Parallel Market, represents a new investment opportunity to a large segment of companies, including small and medium-sized ones. These companies play an important role in supporting the national economy and Nomu will enhance growth as the listing requirements are more flexible than the main market’s.