Saudi Arabia’s parallel market Nomu outshines TASI with 209% market cap progress
RIYADH: Saudi Arabia’s parallel market’s Nomu capped index took buyers unexpectedly as its market worth grew at a sooner charge than the principle market’s TASI throughout the first quarter of 2022.
Nomu’s market capitalization rose 209 p.c on the 12 months to SR38.5 billion ($10.3 billion) from SR12.5 billion within the year-ago interval, in response to statistics by the Capital Market Authority.
Nonetheless, the market cap of the principle market, which captures the efficiency of 215 companies listed on the Saudi alternate, elevated at a slower charge of 24 p.c to SR11.96 trillion.
The parallel market exited the quarter at 25,010 factors, with the full worth of shares traded surging 162 p.c year-on-year to SR7.11 billion, whereas the principle market noticed a drop of twenty-two p.c.
The worth of shares traded on the parallel market stood at SR3.8 billion within the fourth quarter of 2021 and SR2.7 billion within the first quarter of the identical 12 months.
It’s price mentioning that the worry of a worldwide financial slowdown weighed on the parallel market index in Might, dragging it right down to 22,402 factors on the closing bell on Might 29.
Nomu has additionally attracted firms searching for to promote shares to the general public with lighter itemizing rules, resulting in a major enhance in listings over the previous two years.
The variety of publicly listed firms on the parallel market reached 25 by the tip of the primary quarter this 12 months, in opposition to solely 4 listings within the fourth quarter of 2020.
Within the first quarter alone, Nomu recorded seven IPOs elevating $608 million along with 4 direct listings, due to robust curiosity within the oil-rich nation’s capital market.
Meals supply platform Jahez Worldwide Co.’s itemizing in January was the first-ever of a neighborhood know-how startup on Nomu, after producing $428 million in proceeds.
As many as 62 firms utilized for providing purposes on the parallel market throughout the first quarter, out of which six have been authorized.
That is down barely on a sequential foundation from a file 71 filings within the fourth quarter of 2021.
Nomu affords an enormous prospect for progress to smaller firms that want to go public.
They will later shift to the principle market when able to bear larger masses by way of information disclosure and governance.
Most lately, Arab Information reported that Nomu-listed developer Somou Actual Property Co. is planning a switch to the principle TASI index.
The transition is topic to approval from the Saudi inventory alternate in addition to fulfilling all necessities imposed by the market.