Become an Issuer

Being the largest (by market capitalization) and the most liquid stock market in the Middle East and North Africa, the Saudi Stock Exchange (Tadawul) offers issuers the ability to grow their capital with confidence through facilitating trading in different securities such as equities, debt instruments and ETFs. In addition, Tadawul offers a variety of services that help issuers to manage their issuing-related activities.

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 Fluctuation Limits	±10%	±20%

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