In cooperation with the competent government agencies, several obstacles faced by companies in some sectors which prevents directly or indirectly from listing these companies in the Saudi Stock Market have been overcome. Tadawul’s Nomu-Parallel Market segment, which has lighter listing requirements, will expand daily price fluctuation limits to 30 per cent from 20 per cent for all listed securities. Tadawul expects the first dual listing of a foreign company to take place early 2020, according to its chief markets officer Mohammed Al-Rumaih. All Tadawul-listed issuers must offer disclosures in English and Arabic – Saudi regulator The decision, taken by the Capital Market Authority, takes effect from January 1, 2021 by Aarti Nagraj Investment in this market is restricted to Qualified Investors and not open to the public. Fast Track services at the Authority’s Business Support Center and advisory services including training courses on the electronic systems of the Authority. A parallel equity market with lighter listing requirements that serves as an alternative platform for companies to go public. M/15 dated 01/03/1428H (corresponding to 20 March 2007). One environmental initiative in Tadawul is the development of a Recycling & Waste Management Program. Saudi regulator approves Aramco Tadawul listing 03 November 2019 By Indrajit Sen. Foreign firms will be able to list on the exchange and will be "subject to the same listing, disclosure and governance requirements as Saudi listed companies", Tadawul said in a statement following publication of amended listing rules from the regulator, the Capital Markets Authority. Media contact information ���)ή�w�8�. Aramco listing: Tadawul ranked among the top ten exchanges globally in terms of market capitalization. The share capital of the Company is SAR 1,200 million divided into 120 million shares of SAR 10 each fully subscribed by the Public Investment Fund (“PIF”). The new equity market is designed to attract small and medium-sized enterprises (SMEs), and will be established in … 29 Center Street Burlington, MA 01803 Phone: 781-270-1600 Fax: 781-390-2800 Saudi Aramco has officially listed on the Saudi Stock Exchange (Tadawul) today, marking the successful Initial Public Offering of the Company. Tadawul had then not reached the state of maturity it has today, and the Capital Market Authority (CMA) had given approval to admit Qualified Foreign Investors (QFIs) only shortly before. Register here. The issuer must be a joint stock company. Priority for reporting and statistical data. We will make every effort, alongside our partners in the Saudi Capital Market, to ensure this listing is a success and secures Tadawul’s position as a … The Offering & Listing process takes the following criteria into consideration: The issuer must be a joint stock company. Completion of the inclusion in MSCI and S&P. 2. The Saudi Stock Exchange (Tadawul) is the sole entity authorized in the Kingdom of Saudi Arabia to act as the kingdom's securities exchange (the Exchange), listing and trading in securities. CMA regulations dictate that companies seeking to go public with their shares prepare in advance to fulfill listing requirements. The Tadawul has said it has been preparing for years and is primed for the long-awaited share sale in coming weeks. Yet Tadawul faced up to the task and concluded this epoch making event with flying colours. New listings, including REITs, and privatizations will reflect the reshaping of the economy and will provide capital to support the growth of Saudi businesses, further diversifying the range of investment opportunities and the development of non-oil sectors, including real estate. Foreign firms will be able to list on the exchange and will be "subject to the same listing, disclosure and governance requirements as Saudi listed companies", Tadawul said in a statement following publication of amended listing rules from the regulator, the Capital Markets Authority. However, the CMA has full discretion to approve the application of a foreign company listed in another regulated market (see Question 3, Main requirements). In the table below is a full list of governmental entities with their listing incentives that have been launched so far for listed companies: Increased funding percentage, and increased credit services limits for each customer. Annual Returns. Tadawul’s Nomu-Parallel Market segment, which has lighter listing requirements, will expand daily price fluctuation limits to 30% from 20% for all listed securities. A parallel equity market with lighter listing requirements that serves as an alternative platform for com-panies to go public, and the investment in this market is restricted to Qualified Investors. According to Article (17) in the Executive regulation of New Professional Corporations Law: now it is allowed for a professional company to transform into a joint stock company or any other company form mentioned in the third article of the New Professional Corporations Law according to the corporation’s law provisions except for their registration in the commercial register, and that after fulfilling the conditions and provisions stipulated in the regulations and law. The Tadawul All-Share Index (TASI) reached its highest point at 20,634.86 on 25 February 2006. A parallel equity market with lighter listing requirements that serves as an alternative platform for companies to go public. eReference Data encompasses a bundle of new financial services targeted at the different segments of investors as well as issuers, Don't have account? The old Listing Rules required an underwriter to have a minimum net capital that was sufficient to meet any underwriting commitment. Increased loan limits granted to listed companies. Saudi Arabia's stock exchange, Tadawul, will allow foreign companies to list on its exchange. Priority on training programs for listed companies. The investment bank is the guide of the overall IPO process and makes sure the company complies with listing and admission rules. One of the Financial Sector Development Program (FSDP) initiatives. “Talks are ongoing as there is a growing desire of major GCC companies and outside the region to be dual listed on Tadawul,” Al-Rumaih told Al Arabiya TV. %���� Saudi Aramco has officially listed on the Saudi Stock Exchange (Tadawul) today, marking the successful Initial Public Offering of the Company. Additional information: All of Tadawul’s sustainability work is underpinned by honoring its national responsibilities of adopting regulatory and market best practices, fostering market literacy and investor protection and delivering on its socio-economic responsibilities. time of listing and all investors must be provided with appropriate information to enable dealings in such securities to take place on an open and fair basis. The Tadawul All-Share Index (TASI) reached its highest point at 20,634.86 on 25 February 2006. Listing Vehicle: The issuer must be a KSA joint stock company. The listing requirements also include the appointment of two representatives of the issuer for all purposes related to the listing, provided that one of them is a member of the board of directors and the other is a senior executive. (under competition and government procurement rule), Real Estate Investment Traded Funds – REITs, Closed-Ended Investment Traded Funds – CEFs, Restriction Periods and Financials Deadlines, iBoxx Tadawul SAR Government Sukuk & Bond Indices, Exchange and Centre Rules and Regulations. The issuer must float at least 20% of the issued shares, or SAR 30 million worth of shares in the market, whichever is less. %PDF-1.5 Preference in business and government procurement (under competition and government procurement rule) for listed companies in the Capital Market. It is a parallel equity market with lighter listing requirements (figure 1) that makes it easier for SMEs to list and get access to the capital they need to grow their business. Listing requirements comprise the various criteria and minimum standards established by stock exchanges, such as the New York Stock Exchange, to allow membership in the exchange. Tadawul might allow a lower market cap in case of sufficient market liquidity, after obtaining the CMA’s approval. Saudi Aramco, which was wholly state-owned prior to the listing, is the flagship of the economy of the Kingdom. Tadawul might allow a lower market cap in case of sufficient market liquidity, after obtaining the CMA’s approval. The idea of divesting a share of Aramco’s ownership was first mooted about four years ago. Regardless of the fine print of the regulatory changes to the Tadawul, it is clear that 2013 will be an intriguing period of transformation for the Kingdom’s public market. Providing a relationship manager for listed companies to help settle all transactions with the Authority and follow up on all tasks related to zakat or income taxes. seeking a cross-listing on the Tadawul to comply with. 3 0 obj Tadawul’s Nomu-Parallel Market segment, which has lighter listing requirements, will expand daily price fluctuation limits to 30% from 20% for all listed securities. Read More. Saudi Arabia's stock exchange, Tadawul, will allow foreign companies to list on its exchange. General Authority of Zakat and Tax (GAZT), Ministry of Human Resources and Social Development, Transforming a professional corporation into another form. It is worth noting that Tadawul opened to foreign investors in 2015 and there has been a raft of reforms to attract overseas capital to diversify the oil-dependent economy. The move clears the way for the highly anticipated IPO of Aramco’s shares, which is expected to be the biggest such exercise in global financial history . <>>> December. Onerous preliminary work on a number of aspects of the listing had to be completed. In the table below the obstacles that have been overcome: The Ministry of Health has removed the restriction from its regulation that prevents pharmacies from expanding, by allowing unlimited ownership of pharmacies and partnership in an unlimited number in accordance with the conditions and provisions stipulated in the Executive Regulations of Pharmaceutical Products and Facilities Law. Stow Campus. The listing requirements also include the appointment of two representatives of the issuer for all purposes related to the listing, provided that one of them is a member of the board of directors and the other is a senior executive. Increased diversification and deepening the capital market. the Capital Market Law issued by Royal Decree Number M/30 dated 2/6/1424H. 4 0 obj Providing the listed companies the priority of applying to the Authorized Economic Operator Program. On 26 February 2017, The Saudi Parallel Market (Nomu) was launched as a parallel equity market with lighter listing requirements to provide companies an alternative platform for the public listing. Investment in this market is restricted to Qualified Investors and not open to the public. 1 State Road, P. O. What drove the listing . The proposed amendment aim to regulate the listing requirements for real estate investment trusts (REITs), closed-end investment fund, and exchange-traded funds (ETFs) on the Nomu parallel market. 18/08/2016 Argaam. Tadawul’s Nomu-Parallel Market segment, which has lighter listing requirements, will expand daily price fluctuation limits to 30 percent from 20 percent for all listed securities. Aramco listing: Tadawul ranked among the top ten exchanges globally in terms of market capitalization November. The issuer must float at least 20% of the issued shares at the time of listing, or SAR 30 million worth of shares in the market, whichever is less. Additional source of funding for issuers to access capital. For more information,kindly click here . Contact Information Department of Fire Services + Address. Saudi Arabia has seen a flurry of new share offerings this year, in contrast to some of its neighbours. Minimum market cap of SAR 10 million. Has sustainability bond listing segment: No: Has SME listing platform: Yes. Tadawul is committed to grant companies a conditional approval on listing no later than 10 business days from completing the required paperwork. Client Alert. Article 18: Listing of securities •Upgrade Tadawul Taxonomy with IFRS standard XBRL (eXtensible Business Reporting Language) ... •Managing pre-listing requirements •Meetings with issuers and listing advisors •Post- listing follow ups with issuers and related parties •Issuers relations management •Conducted issuer briefings, workshops. 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