Saudi Arabia’s Capital Market Authority (CMA) Ahas proposed major revisions to investor eligibility criteria on Nomu, its parallel market. The draft aims to simplify access for qualified investors and stimulate trading activity. Key changes include reduced financial thresholds and streamlined transaction requirements.
The CMA plans to redefine “Qualified Investor” terms, lowering minimum transaction values from SAR 40 million to SAR 30 million annually. Crucially, the mandatory 10 quarterly trades will be scrapped. Board members of Nomu-listed firms will now qualify as investors, broadening participation.
Public Feedback Invited Until April 28
Interested stakeholders can submit opinions via the National Competitiveness Center’s Public Consultation Platform until April 28. The CMA emphasized feedback will shape final amendments to enhance regulatory efficiency.
Nomu has emerged as a hotspot for listings, with 28 IPOs and three direct listings in 2024 raising SAR 1.1 billion. EY reported 12 IPOs in Q4 2024 alone, securing $119 million. Gregory Hughes, EY MENA IPO and Transaction Diligence Leader noted, “The last quarter of 2024 was a bumper quarter for the MENA region with 25 IPOs, making up 46% of the total IPO activity in that year. Nomu listings accounted for 50%, indicating robust activity in the junior Saudi market.”
2025 Listings Signal Continued Growth
Eight firms debuted on Nomu in Q1 2025, including Ratio Speciality Company (RATIO) and Shmoh Almadi Co. Last week, Marketing Home Group, Qudra IT, and Hawyia Auctions secured listing approvals. Additionally, the reforms align with Saudi Arabia’s push to diversify its economy and strengthen capital markets. Lowering barriers encourages retail and institutional participation, potentially accelerating Nomu’s role as a hub for SMEs. With IPO momentum rising, simplified rules could attract more domestic and international investors.
Prospective investors should review the draft criteria and participate in consultations. Companies eyeing Nomu listings can leverage eased rules to fast-track fundraising. The CMA expects finalized amendments to take effect post-feedback, further energizing Saudi’s parallel market.
