Saudi CMA Sets Stage for Three Exclusive IPOs
Saudi Arabia's Capital Market Authority has greenlit three initial public offerings on the Tadawul Parallel Market, signalling sustained investor interest and broadening of the kingdom's capital markets. The regulator authorised offerings for Zahr Al Khuzama Aluminium Company, Quality Education Company and Sahat Almajd Company Trading on 18 June 2025.
The combined volume of shares to be sold stands at approximately 6.175 million, constituting stakes ranging from 11 to 20 per cent in the respective firms. Zahr Al Khuzama will float 300,000 shares, Quality Education 2.5 million, and Sahat Almajd 4.375 million shares.
Each IPO is exclusively targeted at qualified investors, with prospectuses scheduled for publication ahead of the offers. The approvals, valid for six months, reflect the CMA's intent to diversify offerings while maintaining regulatory oversight.
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Nomu has attracted increasing interest as a gateway for smaller and mid‑cap companies to access Saudi capital. This latest round of approvals follows 11 offerings already listed or in the pipeline this year, marking a notable shift in focus toward smaller enterprises beyond the main exchange, Tadawul.
The Zahr Al Khuzama float presents an opportunity to inject fresh capital into the aluminium sector, aiding its expansion and supporting the kingdom's industrial ambitions under Vision 2030. Its 20 per cent stake opening is likely to appeal to investors seeking exposure to commodities and D‑rated industries known for cost‑efficiency. Quality Education's offering, also at 20 per cent, underscores Saudi Arabia's emphasis on educational infrastructure and services. As the kingdom continues investing in human capital, this listing responds to rising demand for quality educational provisions.
Meanwhile, the 11.11 per cent offering by Sahat Almajd Company Trading—whose operations lie in trading goods and services—may serve as a bellwether for investor appetite in more diversified commercial ventures transitioning toward public ownership.
Regulatory constraints limit participation to qualified investors, aiming to ensure market stability and prevent speculative retail activity. This aligns with other recent IPO frameworks, including the Hawyia Auction Co float, which resulted in daily price fluctuation limits and standard listing protocols on Nomu.
The prospectuses, expected to provide comprehensive financial, operational and ownership disclosures, are anticipated to feature standard risk disclosures and corporate governance details. As an approved offering does not equate to an investment endorsement, the CMA is ensuring that qualified investors are aware of their due‑diligence obligations.
Markets reacted cautiously. Nomu's index has experienced slight downward variance amid global economic headwinds, but the IPO pipeline may inspire renewed investor confidence. The main index, TASI, closed at approximately 10,591 points—a decline of 1.15 per cent, while Nomu Composite dropped 0.96 per cent on 19 June.
Analysts note that the six‑month validity window compels issuers toward timely execution. As such, these companies must complete their share sales and listings before December. Those delays could result in approvals being rescinded.
Industry observers interpret this episode as part of a broader strategic push to deepen the Saudi capital market ecosystem, encouraging stronger participation from mid‑tier entities. In parallel, main market IPO activity continues to draw global interest, with high‑profile offerings such as those launched by Umm Al Qura, Entaj and Derayah Financial earlier this year collectively generating over US$1 billion.
The parallel market serves a complementary function, offering flexibility and attractively priced entry points for investors comfortable with slightly higher risk profiles in exchange for growth potential. With each qualifying investor required to conduct thorough due diligence, the system reinforces regulatory robustness while supporting ambition among a broader swathe of companies seeking public-market financing.
Saudi Arabia's capital markets continue evolving in line with Vision 2030 goals, with both infrastructure and regulatory frameworks maturing to support a more inclusive investor base. The inclusion of newer sectors, such as education and commodities trading, diversifies the market's profile—appealing to both domestic and international investors pursuing new growth corridors amid global volatility.
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