Post by conflict on Dec 30, 2016 7:16:11 GMT 4
Pursuant to Resolution number 3-151-2016 dated 21 December 2016,
the Saudi Arabian Capital Market Authority issued the Parallel
Market Listing Rules (the "Rules"). The
Rules entered into force as from their issuance.
The Rules provide accommodation and a listing opportunity to
joint stock companies that do not meet the requirements of the main
market.
The below table summarizes the main requirements for listing in
the parallel market. It also offers a comparison with the
requirements relating to the main market.
| PARALLEL MARKET | MAIN MARKET | |
| Expected aggregate market value (AS at the date of listing) of all shares to be listed | At least SAR 10 million | At least SAR 100 million |
| MINIMUM PUBLIC ownership within the requested class of share | Not less than (20%) | Not less than (30%) |
MINIMUM Number of public shareholders | Not less than (50) shareholders if the total market value of all shares to be listed is more than SAR 40 million | Not less than (200) shareholders |
| Not less than (35) shareholders if the total market value of all shares to be listed is less than SAR 40 million | ||
| Track Record | Must have been carrying out, by itself or through one or more of its subsidiaries, a main activity for at least one financial year | Must have been carrying on, either by itself or through one or more of its subsidiaries, a main activity for at least three financial years under substantially the same management |
The Rules confine the trading of shares listed in the parallel
market to qualified investors.