Nomu Parallel Market Overview
80+
Listed on Nomu
2017
Year Launched
30%
Daily Price Limit
SAR 10M
Minimum Market Cap
What is the Nomu Parallel Market?
Nomu (the Parallel Market) is a trading platform launched by the Saudi Exchange (Tadawul) in February 2017. It targets small, medium, and emerging companies seeking to raise capital through public share offerings. Nomu operates with more flexible listing requirements compared to the main market which hosts major companies like Aramco and SABIC, making it easier for these companies to access capital markets.
Nomu is designed exclusively for qualified investors only, meaning an investor must meet certain criteria (such as holding a portfolio worth at least SAR 1 million or having approved professional certifications) to trade on this market. This restriction aims to protect less experienced investors from the higher risks associated with smaller companies. You can learn about the detailed differences between the two markets on the TASI vs Nomu comparison page.
Important Notice for Investors
The daily price limit on the Nomu market reaches 30% (compared to 10% on the main market). This means a stock's price can rise or fall by up to 30% in a single session, representing a high level of risk that requires advanced investment experience.
Comparison: Main Market vs Nomu
| Criteria | Main Market (TASI) | Parallel Market (Nomu) |
|---|---|---|
| Company Types | Large and mid-cap companies | Small, mid-cap, and emerging companies |
| Minimum Market Cap | SAR 300 million | SAR 10 million |
| Minimum Free Float | 30% of total shares | 20% of total shares |
| Required Shareholders | At least 200 shareholders | At least 50 shareholders |
| Operating Track Record | At least 3 years | At least 1 year |
| Investor Eligibility | All investors | Qualified investors only |
| Daily Price Limit | +/-10% of closing price | +/-30% of closing price |
| Tick Size | SAR 0.01 (above SAR 50) | SAR 0.02 |
Company Types
Main Market
Large and mid-cap companies
Nomu
Small, mid-cap, and emerging companies
Minimum Market Cap
Main Market
SAR 300 million
Nomu
SAR 10 million
Minimum Free Float
Main Market
30% of total shares
Nomu
20% of total shares
Required Shareholders
Main Market
At least 200 shareholders
Nomu
At least 50 shareholders
Operating Track Record
Main Market
At least 3 years
Nomu
At least 1 year
Investor Eligibility
Main Market
All investors
Nomu
Qualified investors only
Daily Price Limit
Main Market
+/-10% of closing price
Nomu
+/-30% of closing price
Tick Size
Main Market
SAR 0.01 (above SAR 50)
Nomu
SAR 0.02
Investor's Guide to the Nomu Market
How to Evaluate Nomu Stocks Before Investing
Since analyst coverage for Nomu companies is limited compared to large-cap stocks on the TASI index, investors need to put in more effort analyzing financial statements and quarterly reports. Focus on revenue growth rate, operating profit margin, and debt levels. It is also important to review the ownership structure to understand the free float available for trading. You can monitor all stock prices to compare valuation levels between main market and Nomu stocks.
Trading Liquidity on the Nomu Market
One of the most significant challenges on the Nomu market is lower liquidity compared to the main market. While stocks like Al Rajhi Bank see daily trading volumes worth billions of riyals, some Nomu stocks may not exceed a few million in daily turnover. This means entering and exiting large positions can be difficult, especially during periods of decline. It is always advisable to follow today's trading activity to monitor volumes and identify the most active periods during trading hours.
IPOs on the Nomu Market
The Nomu market sees an increasing number of initial public offerings (IPOs) each year, as emerging and mid-sized companies choose to list there as a first step before potentially moving to the main market later. These IPOs provide an opportunity to build a trading track record and attract institutional investors. For more about the regulatory framework of the Saudi market, explore our comprehensive guide.
Disclaimer: Investing in the Nomu parallel market carries high risks and is intended for qualified investors only. The information displayed is for educational purposes and does not constitute investment advice. Please consult a licensed financial advisor before making any investment decisions.
FAQ: Nomu Parallel Market
What is the Nomu parallel market on Tadawul?
Nomu is the parallel market on the Saudi Exchange (Tadawul). It was launched in February 2017 as an alternative platform for small, mid-cap, and emerging companies that may not meet the listing requirements of the main market. Nomu offers flexible listing requirements while maintaining governance and transparency standards.
Who is eligible to trade on the Nomu market?
Trading on the Nomu market is restricted to qualified investors only. This includes investors with a portfolio of at least SAR 1 million, investors holding an approved securities certification (such as CME-1), investment funds, and institutional investors. Individual retail investors who do not meet these qualifications cannot trade on Nomu.
What are the risks of investing in the Nomu market?
Investing in the Nomu market carries higher risks compared to the main market, including: higher price volatility (30% daily limit vs 10% on the main market), lower liquidity making it harder to sell at desired prices, smaller companies that may be more vulnerable to economic fluctuations, and lower disclosure requirements compared to the main market.
How can a company move from Nomu to the main market?
A company listed on Nomu can transfer to the main market (TASI) after meeting the main market listing requirements. These include: a market capitalization of at least SAR 300 million, at least 30% free float, at least 200 shareholders, and an operating track record of at least 3 years. This process is known as graduating from Nomu to the main market.
How many sectors are there in the Nomu parallel market?
The Nomu market is not divided into specialized sectors in the same way as the main TASI market. Nomu companies are classified by their primary economic activity, but sector diversity is much lower than the main market. Most Nomu companies belong to services, technology, and light manufacturing sectors. You can view the full sector classification for the main market on the TASI Components page.