Tadawul CEO says low performers will not be allowed to move to Nomu

Low-performing companies in the main market will not be allowed to move to the parallel market (Nomu), as it will cause the market to fail, Khalid Al Hussan, Tadawul’s chief executive officer, said.

“Nomu was established to create a platform with lighter regulatory requirements to help small and medium enterprises (SMEs) continue their operations, achieve governance and borrowing through the capital market,” Al Hussan said during his participation in the listing forum organized by the Riyadh Chamber yesterday.

Companies incur losses and show negative performance in all markets, Al Hussan said, adding that any company that fails to comply with the market requirements will exit.

The CEO has also unveiled additional incentives to activate listing in Nomu and the main market in coordination with the Capital Market Authority (CMA) that will be announced soon.

As for dual listing, discussions are ongoing with GCC and non-GCC companies about listings, but there is no official request submitted to Tadawul to date.

"Our discussion with some companies from GCC markets is in final stages. The legislative and regulatory structure of these markets is very much in line with the structure in the Kingdom, and soon we will see some of these companies in the Saudi stock market," Al Hussan added.