Changes are aimed at supporting the growth, development and sustainability of the Nomu parallel market
The Saudi Stock Exchange, also known as Tadawul, on Wednesday announced a series structural changes to Nomu, the parallel market supporting small and medium-sized companies.
The changes are aimed at supporting the growth, development and sustainability of the market, increasing the number of listed companies and enhancing liquidity, a statement said.
It added that the changes come two years after launching Nomu as part of plans to support SMEs, a key part of the diversification of the Saudi economy.
The structural changes are planned to be implemented in two phases taking place in the first two quarters of 2019.
Changes in the first phase include provisions to allow direct listings on Nomu without an initial public offering (IPO), requirements for issuers to report financial earnings on a semi-annual basis instead of quarterly based reporting and streamlining the process for issuers to transition from Nomu to the main market.
Changes to be rolled out in the second phase include listing close ended funds and REITs on Nomu, introducing volatility guards and independent research.
Khalid Al Hussan, CEO of Tadawul, said: “These initiatives are part of our ongoing strategic plans to further develop Nomu. We are constantly working on making Nomu a more flexible attractive platform for both investors and potential companies. Throughout the past two years, we have been carefully analyzing the market and taking into consideration the needs of market participants.
“The changes also come hand in hand with the Saudi market upcoming inclusion in FTSE Russell and S&P international indices as an emerging market in March, followed by the inclusion in MSCI Emerging Market Index in May, which will enhance the Saudi market’s position among international markets,” Al Hussan added.For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.