In a strategic move reflecting its growth and development, Mohammed Hadi Al-Rasheed & Partners announced that its board of directors approved the company's transfer from the parallel market (Nomu) to the main market (TASI) last Thursday. This decision represents a significant turning point for the company, placing it on the cusp of a new phase of expansion and presence in the Saudi financial market.
General context and organizational background
This move is part of the Saudi financial market system, which aims to support promising companies and provide them with gradual growth pathways. The parallel market, Nomu, was launched in 2017 as an alternative platform with more flexible listing requirements, with the goal of enabling small and medium-sized enterprises (SMEs) to access equity financing and enhance their governance. Moving from Nomu to the main market, Tadawul, is a goal for many companies listed on the parallel market, as it is considered a testament to their operational and financial maturity and their ability to meet the stringent listing and transparency standards of the larger market.
The importance of the event and its expected impact
Domestically, Al-Rashid Company's move to the main market is expected to significantly enhance its standing. Listing on Tadawul grants the company access to a wider range of local and international investors, including investment funds and major financial institutions whose investment policies might otherwise be restricted to the main market. This will increase the stock's liquidity, enhance the company's transparency, and raise the level of governance implemented, positively impacting investor confidence. According to the company's statement, Istidama Financial has been appointed as the financial advisor to manage the transition, ensuring compliance with the updated listing rules issued by the Capital Market Authority.
Regionally and internationally, this move reflects the positive dynamism of the Saudi economy and the development of its financial markets, in line with the goals of Vision 2030, which aims to deepen the financial market and diversify the economy. The successful transition of companies from the parallel market to the main market demonstrates the effectiveness of Nomu as an incubator for promising companies and enhances the overall attractiveness of the Saudi market to foreign investors. The company confirmed that the final transition remains subject to the approval of the Saudi Stock Exchange and the fulfillment of all regulatory requirements, and it remains committed to announcing any material developments in this regard in due course.
