DEAL: first IPO on Saudi’s parallel market

Author: Lizzie Meager | Published: 15 Mar 2017

Saudi Arabia’s brand new parallel market for smaller companies has seen its first ever initial public offering (IPO), by a local restaurant chain.

Raydan Cuisines & Restaurants, a Jeddah-based company, became the first company to list on the Nomu, Arabic for growth, selling 30% of its shares.

The parallel market, launched in January, is loosely modelled on London’s AIM market, with lighter-touch and less expensive listing requirements. It’s the first of its kind in the region, and on the first day of trading a total of nine firms out of 77 applications were listed.

"The backbone of the Saudi economy is of course Aramco and oil, but on a private sector level family businesses and SMEs have also been hit by austerity measures. So the authorities have been under pressure to do something about the stock market," said Sanjarbek Abdukhalilov, partner at Shearman & Sterling in...


 

 

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