The decision to list on the financial market represents a fundamental turning point in the path of any company, and choosing the right path between the Main Market (TASI) and the Parallel Market (Nomu) determines the shape of the restructuring, the level of commitment, and the quality of investors.
The change between the two markets is not limited only to capital size but extends to governance components, disclosure requirements, and expansion strategies. Here is a practical and direct comparison of the most prominent fundamental differences:
1. Capital Requirements and Offering Percentage
- Main Market (TASI): Requires a minimum capital of SAR 300 million, offering at least 30% of the company's shares to the public. This requires a large, stable financial structure.
- Parallel Market (Nomu): Designed to be more flexible; with a minimum capital of SAR 30 million, and a minimum offering percentage of 20%. This makes it an ideal platform for medium, small, or fast-growing companies.
2. Corporate Structuring and Governance
- Main Market: Full compliance with the CMA Corporate Governance Regulations is mandatory. This entails forming board sub-committees (Audit, Nomination and Remuneration, Risk), updating Delegate of Authority (DOA) matrices, and setting strict conflict of interest and performance evaluation policies.
- Parallel Market: Governance requirements here are mostly guiding (with some mandatory exceptions), providing companies with the space to arrange internal affairs and board regulations gradually before moving to the Main Market.
3. Investor Profile and Liquidity Levels
- Main Market: Available to all investor categories (retail, institutional, investment funds, foreign), ensuring high liquidity levels and generally less severe volatility.
- Parallel Market: Trading is restricted to Qualified Investors (institutions or individuals with specific financial expertise or portfolio sizes). This constraint reduces liquidity compared to TASI but protects small investors from the high risks of growth-stage companies.
4. Disclosure and Periodic Reporting
- Main Market: Strict disclosure obligations. Quarterly and annual financial statements must be published within specific short periods, in addition to immediate disclosure of any material developments that may affect the share price.
- Parallel Market: Requirements are relatively lighter, reducing the administrative and operational burden on executive management, giving the company more flexibility to prepare performance reports and build its financial capabilities gradually.
5. Transition from Nomu to TASI
Listing on Nomu is often a strategic transitional step. Following two years of listing on the Parallel Market and fulfilling the Main Market requirements (like raising capital, expanding the shareholder base, and applying comprehensive governance), the company can apply to transit. This phase demands intensive effort to redesign the organizational structure, update salary scales and job descriptions, and activate advanced management reporting (like Power BI) to ensure company readiness for the new phase.