Latest news with #ZahrAlKhuzama
Arab News
10 hours ago
- Business
- Arab News
Saudi CMA approves 3 parallel market listings in a single day
RIYADH: Three Saudi firms received regulatory approval to list on Nomu in a single day, underscoring growing investor appetite for the Kingdom's bourses. Zahr Al Khuzama Aluminum, Sahat Almajd Trading, and Quality Education Co. were given the green light by the Capital Market Authority on June 18, marking a rare instance of multiple listings being cleared simultaneously. This paves the way for all three companies to offer shares exclusively to qualified investors, with each expected to publish its prospectus ahead of the offerings. The surge in simultaneous approvals comes amid broader reforms to Saudi Arabia's capital markets, as the Capital Market Authority rolls out new frameworks — including regulations for special purpose acquisition companies — to expand financing options and boost private-sector participation. An official release stated that Sahat Almajd Co. Trading will float 4.375 million shares on the parallel market, representing 11.11 percent of its capital. Quality Education Co. will offer 2.5 million shares, accounting for 20 percent, while Zahr Al Khuzama Aluminum can offer 300,000 shares, also representing 20 percent. The approvals highlight the role of Nomu as a streamlined listing venue designed to enable micro, small, and medium-sized enterprises to access capital. With lighter requirements for market capitalization, public float, and disclosure, it offers a more accessible alternative to the main market. In 2024, Nomu recorded 28 initial public offerings and three direct listings, raising over SR1.1 billion ($293.2 million). The platform has become central to Saudi Arabia's efforts to deepen its equity markets and support SMEs, which now constitute 30 percent of listed companies in Saudi Arabia. The Kingdom is targeting a 35 percent contribution from the SME sector to its gross domestic product by 2030, in line with the Vision 2030 economic diversification plan. Investor appetite for listings remains strong. Al Rajhi Capital forecasts 50 to 60 IPOs across Saudi exchanges over the next two years. Separately, EY projects 27 IPOs in Saudi Arabia in 2025 — out of 38 corporate listings anticipated across the Middle East and North Africa region — along with 22 fund listings. The triple listing approvals came as Nomu posted a dip in market performance but maintained healthy trading activity. On June 18 — the same day the CMA cleared the three IPOs — the Nomu index closed at 26,203.84, down from 26,458.24 the previous day. Despite the decline, the market recorded a volume of 3.58 million shares traded across 5,651 transactions, reflecting continued engagement from qualified investors. Over the past month, Nomu's index has retreated from a high of 27,499.65 on May 19, with intermittent recoveries. Trading volumes have remained relatively stable, averaging around 3.2 million to 4.5 million shares daily. The highest daily value traded during this period reached SR50.4 million on June 1, signaling strong liquidity ahead of the CMA's latest approvals. Over the past month, Nomu recorded an average daily trading value of SR36.36 million.
Arabian Post
13 hours ago
- Business
- Arabian Post
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. ADVERTISEMENT 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.
Argaam
a day ago
- Business
- Argaam
Zahr Al Khuzama gets CMA nod for 20% stake sale on Nomu
The Capital Market Authority (CMA) approved today, June 18, the application submitted by Zahr Al Khuzama Aluminum Co. to register and offer about 300,000 shares, on the Nomu-Parallel Market. The stake represents 20% of the company's total share capital, the market regulator said in a statement. The offer will be only for qualified investors as defined in the list of terms used in the regulations and rules of the CMA. The prospectus will be published well in advance of the offering's start date. The CMA's approval is valid for six months from the date of the resolution. It will be deemed cancelled if the offering and listing of the company's shares are not completed within this period.
