The Saudi Stock Exchange (Tadawul) officially announced the approval for the listing and commencement of trading of shares of Nafouth Food Products Company on the main market (TASI), starting from next Wednesday, January 21, in a step that represents a qualitative leap for the company’s journey in the financial markets.
Tadawul explained in its statement that the company's shares will trade under the symbol (2288) within the Food Production sector, a sector experiencing significant growth in the Kingdom. It also noted that the daily price fluctuation limits will be 10% upward and downward, the same limit applied in the main market, reflecting the stability of the regulatory framework to which the company will be subject following its relocation.
Details of the transition from the parallel market
This announcement comes as a culmination of the company's efforts over the past period. On December 31st, the Saudi Stock Exchange (Tadawul) announced its approval of Nafouth Food Products Company's request to transfer from Nomu – the Parallel Market – to the Main Market. This transfer is a strong indicator of the company's maturity and its fulfillment of all the stringent criteria required for listing on the Main Market, including liquidity requirements, market capitalization, and high standards of disclosure and transparency.
The importance of moving to the main market (TASI)
Moving from the parallel market (Nomu) to the main market (TASI) is a pivotal event for any listed company, as it opens the door to a broader investor base, including major investment funds and qualified foreign investors who often concentrate their trading in the main market. This move also enhances the daily liquidity of the stock and boosts confidence among shareholders, customers, and suppliers alike, given the advanced governance requirements imposed by the main market.
Economic context and Vision 2030
This listing aligns with the objectives of the Financial Sector Development Program, one of the programs under the Kingdom's Vision 2030, which aims to develop an advanced and successful financial market, thereby strengthening its role as a primary channel for financing and investment. Regulatory bodies in the Kingdom continuously encourage promising companies in the parallel market to grow and expand to meet the requirements for inclusion in the main market, thereby deepening the Saudi financial market and making it more attractive to both domestic and international capital.
On the sector level, the inclusion of more food production companies in the main market represents support for the Kingdom’s food security strategy, as it allows companies operating in this field to access the necessary financing to expand production lines and innovate, which is in the interest of the national economy and the end consumer.
