Tadawul allows firms’ direct listing on Nomu without IPO

Saudi Arabia’s Stock Exchange (Tadawul) has allowed firms to be directly listed on Nomu Parallel Market without an initial public offering (IPO).

Companies will be able to sell the minimum limit of cash flow within 12 months of listing.

Under the new rules, the direct listing requires the following:

1) Meeting all regulatory requirements for listing on Tadawul with the exception of the stock offering percentage.

2) Appointing a financial advisor to prepare the prospectus.

3) Appointing an authorized person to provide liquidity.

4) Offering 20 percent of capital or SAR 30 million worth of shares, whichever less.

Tadawul has announced in February a series of significant measures to boost liquidity as well as listings on the Nomu - the Parallel Market.