CMA proposes easing investor criteria for Nomu to boost participation, liquidity
The proposed amendments suggest reducing the minimum transaction requirement for individual investors from SR40 million ($8 million) to SR30 million over a 12-month period.
Additionally, the requirement for quarterly trading activity would be eliminated. Under the new regulations, board and committee members of companies listed on Nomu would also be eligible to qualify as investors.
The project aims to reserve the term 'Qualified Investor in the Parallel Market' for eligible categories, amend the minimum transaction value required for classifying a natural person as a qualified investor, and rank board members and committee members of listed companies as suitable to invest.
Saudi Arabia accounted for 31 percent of the region's total initial public offering proceeds in 2024, making it the second-largest contributor after the UAE. The Saudi Exchange, Tadawul, witnessed 14 IPOs on its main market, collectively raising $3.8 billion. Nomu also saw 28 IPOs, generating $297 million.
The CMA called upon relevant and interested persons participating in the capital market to share their feedback on the draft for 30 days, ending on April 28.
Earlier in March, the CMA called for feedback on the draft 'Regulatory Framework for Debt Instruments Offering Platforms and Investing in Them,' which aims to develop debt instrument offerings by licensed capital market institutions for securities crowdfunding.
With the consultation period to end on April 23, the draft outlines regulatory and licensing requirements for offering and investing in debt instruments, aligning with developments in the capital market.
Key proposals include allowing organizations to present debt instruments in the sukuk and debt market and enabling companies with a FinTech Experimental Permit to obtain the necessary license to operate as capital market institutions.
Organizations will need an arranging license to offer debt instruments through crowdfunding platforms. The draft also introduces requirements for safeguarding client funds and registrable functions for licensed establishments.
The proposal aims to expand the role of capital market institutions in financial technology, enhance the debt market, and increase participation in securities crowdfunding, supporting the CMA's objectives.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Argaam
a day ago
- Argaam
Marketing Home issues prospectus to list 4.8M shares on TASI
Marketing Home Group Co. set a price range for its initial public offering (IPO) on the Main Marlet (TASI). The shares represent 30% of the company's SAR 160 million share capital, divided into 16 million shares, each with a nominal value of SAR 10. For More IPOs The IPO price will be determined after the book-building process. The subscription period will run for two working days, from Aug. 19-20. According to the prospectus, the book-building process and subscription period for participating entities will run from Aug. 3 to Aug. 7. The Capital Market Authority (CMA) approved in March 17 the company's application to list its shares on TASI. The subscription is limited to two categories of investors: Tranche (A) Participating Entities: This tranche includes the parties entitled to participate in the book-building process in accordance with the book-building instructions, including investment funds, companies, qualified foreign investors, GCC corporate investors, and certain other foreign investors pursuant to swap agreements. Tranche (B) Individual Subscribers: This tranche includes natural Saudi individuals, non-Saudi residents in the Kingdom, and GCC nationals. To be eligible, they must have an investment account and an active portfolio with a receiving agent and must also be eligible to open an investment account with a financial market institution. Key background Marketing Home Group is a privately held Saudi joint-stock company based in Riyadh. It began as a sole proprietorship in 2005. The group focuses on construction materials and brand development and management. Its activities include manufacturing concrete, cement, gypsum, and structural metal products, as well as building construction. The company also engages in wholesale fuel trading, solid, liquid, and gas and retail sales of hardware, paint, glass, home appliances, and furniture. It provides land freight and warehousing services. Its main business lines cover tiles and accessories, lighting products, sanitaryware, and HVAC systems. Company Profile Company Marketing Home Group Core Activities Specialized in building materials and brand management Capital SAR 160 mln Number of Shares 16 mln Share Par Value SAR 10 IPO Summary Issue Percentage 30% Offered shares 4.8 mln shares Total No. of Shares Offered to Individual Investors 960,000 shares (20%) IPO Minimum Limit (Participating Entities) 50,000 shares IPO Minimum Limit (Individual Subscribers) 10 shares IPO Maximum Limit (Participating Entities) 799,990 shares IPO Maximum Limit (Individual Subscribers) 250,000 shares Offer period From Aug. 19-20, 2025 Final Allocation Aug. 24, 2025 Refund (if any) Aug. 27, 2025 Company Shareholders Shareholders Before IPO After IPO Number of Shares (mln shares) Ownership (%) Number of Shares (mln shares) Ownership (%) Musaad Algfari 6.40 39.98% 4.48 27.99% Ali Al-Dosari 5.42 33.86% 3.79 23.70% Mohammed AlZamil 1.33 8.31% 0.93 5.82% Other Shareholders 2.85 17.85% 2.00 12.49% Public -- -- 4.80 30.0% Total 16.00 100% 16.00 100% *Ocean Line is wholly owned by ARASCO, which holds the company's entire capital directly and indirectly before the offering.
Al Arabiya
14-07-2025
- Al Arabiya
Bitcoin tops $120,000 for first time
Bitcoin crossed the $120,000 level for the first time on Monday, marking a milestone for the world's largest cryptocurrency as investors bet on long-sought policy wins for the industry this week. Bitcoin scaled a record high of $121,207.55 in the Asian session on Monday, before pulling back slightly to last trade 1.6 percent higher at $121,015.42. Starting on Monday, the US House of Representatives will debate a series of bills to provide the digital asset industry with the nation's regulatory framework it has long demanded. Those demands have resonated with US President Donald Trump, who has called himself the 'crypto president' and urged policymakers to revamp rules in favor of the industry. 'It's riding a number of tailwinds at the moment,' said IG market analyst Tony Sycamore, citing strong institutional demand, expectations of further gains and support from Trump as reasons for the bullishness. 'It's been a very, very, strong move over the past six or seven days and it's hard to see where it stops now; it looks like it can easily have a look at the $125,000 level,' he said. The surge in bitcoin, which is up 29 percent for the year so far, has sparked a broader rally across other cryptocurrencies over the past few sessions even in the face of Trump's chaotic tariffs. Ether, the second-largest token, scaled a more than five-month top of $3,050.90, while XRP and Solana gained about 3 percent each. The sector's total market value has swelled to about $3.78 trillion, according to data from CoinMarketCap. Earlier this month, Washington declared the week of July 14 as 'crypto week', where members of Congress are set to vote on the Genius Act, the Clarity Act, and the Anti-CBDC Surveillance State Act. The most significant bill is the Genius Act, which would create federal rules for stablecoins. Elsewhere, prices of crypto-listed exchange-traded funds (ETFs) in Hong Kong similarly surged. Spot bitcoin ETFs launched by China AMC, Harvest and Bosera all scaled record highs, while the three ether ETFs managed by the asset managers were up roughly 2 percent each.
Arab News
13-07-2025
- Arab News
How SDRs help Saudi investors access global markets
The Saudi Exchange, or Tadawul, launched its first Saudi Depository Receipts, allowing international equities to be traded locally in riyals. SDRs are financial instruments that allow investors in Saudi Arabia to access shares of international companies without owning the actual shares. They are issued by a local financial institution or depositary bank in Saudi Arabia and represent a certain number of shares in a foreign company. Essentially, SDRs mirror the actual shares traded in the company's home market. Listing SDRs on Tadawul can attract Saudi-based investors who want exposure to international markets without directly investing in foreign exchanges. This broader investor base can boost the company's market visibility and increase trading volumes. These instruments are designed to facilitate cross-border investments, enabling Saudi-based investors to diversify their portfolios by investing in foreign companies while trading in their local currency and adhering to domestic regulatory frameworks. SDRs are traded on Tadawul just like regular shares, making them accessible to local investors without the need to navigate the complexities of foreign markets. SDRs offer several advantages that appeal to Saudi-based investors, including diversification benefits, easy access, tax advantages, liquidity, and transparency. The appeal of SDRs ultimately depends on factors such as the company's performance, geopolitical issues, and market conditions. SDRs are traded on Tadawul just like regular shares, making them accessible to local investors without the need to navigate the complexities of foreign markets. At the Saudi Capital Forum in Riyadh last February, where BMG Financial Group and Dalipal Holdings Limited were sponsors, we discussed with Tadawul officials how Dalipal, listed on the Hong Kong Stock Exchange, could benefit from the issuance of SDRs once launched. BMG and Dalipal have signed a memorandum of understanding to explore a dual listing and the issuance of SDRs. For Dalipal, issuing SDRs will align with Vision 2030, enhance their global brand recognition, mitigate geopolitical risks, and improve liquidity. It is also notable that Dalipal plans to expand its manufacturing facilities to produce advanced pipes for the oil, gas, and hydrogen sectors. They are already preparing their site at King Salman Energy Park in Dammam, Eastern Province. Their SDRs are a link with Saudi investors, fostering a mutually beneficial relationship that promotes cross-border investment and economic integration. The SDRs initiative marks the debut of depository receipts in the Saudi financial market. It is seen as a strategic step toward reinforcing Riyadh's position as a global financial centre, in line with the country's Financial Sector Development Program. • Basil M.K. Al-Ghalayini is chairman and CEO of BMG Financial Group.
