It is a market where shares, that have been registered and admitted for listing as per the Parallel Market Listing Rules, are traded. The Parallel Market was established to promote the role of the Exchange in providing funding sources and making the Exchange more stable, supportive to the national economy and more appealing for investment in. Since the conditions for registration and listing in the Parallel Market-Nomu are less than those required from companies aiming to list in the main market, thus, the Parallel Market is considered as an opportunity for companies (including small and medium-sized enterprises) to obtain funding from the capital market.

The Parallel Market Listing Rules defines "Qualified Investor" as any of the following persons: 1) Authorised Persons, who act for their own account. 2) Clients of a person authorised by the Authority to conduct managing activities provided that this Authorised Person has been appointed as an investment manager on terms which enable him to make decisions concerning the acceptance of an offer and investment in the Parallel Market on the client’s behalf without obtaining prior approval from the client. 3) The Government of the Kingdom, any government body, any supranational authority recognized by the Authority or the Exchange, and any other stock exchange recognized by the Authority or the Securities Depository Center. 4) Government-owned companies, either directly or through a portfolio managed by a person authorised to carry out managing activities. 5) Companies and funds established in a member state of the Cooperation Council for the Arab States of the Gulf. 6) Investment Funds. 7) Qualified Foreign Investors. 8) Any other legal persons allowed to open an investment account in the Kingdom and an account at the Depositary Center. 9) Natural persons allowed to open an investment account in the Kingdom and an account at the Depositary Center, and fulfill any of the following criteria: a. has conducted transactions in security markets of not less than 40 million Saudi riyals in total, and not less than ten transactions in each quarter during the last twelve months. b. the average size of his securities portfolio shall exceed 10 million Saudi riyals during the last twelve months. c. holds the General Securities Qualification Certificate which is recognized by the Authority. 10) Any other persons prescribed by the Authority.

The offer, as per the Parallel Market Listing Rules, is confined to the categories of Qualified Investors pursuant to the Qualified Investor's definition set out in Article 3 of the Parallel Market Listing Rules. Trading shares listed in the Parallel Market-Nomu is confined to Qualified Investors pursuant to the Qualified Investor's definition set out in Article 3 of the Parallel Market Listing Rules, and as an exception from that, shareholders of the issuer, other than Qualified Investors, who owned their shares prior to listing them in the Parallel Market, may trade in these shares and rights issue issued by that issuer.

Any of the public can participate in the offering and trading in the Parallel Market-Nomu, only if they are classified as a Qualified Investor pursuant to the Qualified Investor's definition set out in Article 3 of the Parallel Market Listing Rules. The Parallel Market Listing Rules define "Public" as: "persons other than the following: 1) affiliates of the issuer; 2) substantial shareholders of the issuer; 3) directors and senior executives of the issuer; 4) directors and senior executives of affiliates of the issuer; 5) directors and senior executives of substantial shareholders of the issuer; 6) any relative of persons described at (1), (2), (3), (4) or (5) above; 7) any company controlled by any persons described at (1), (2), (3), (4), (5) or (6) above; or 8) persons acting in concert, with a collective shareholding of (5%) or more of the class of shares to be listed." The Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority defines "Substantial shareholder" as: a person holding (5%) or more of the class of shares of the issuer.

The Parallel Market Listing Rules do not require the dependency of the financial advisor of the issuer.

There is nothing to prevent that. However, it is worth to mention that the Authority may, at all times, require the issuer to appoint a financial advisor, a legal advisor, or any other advisor to advise the issuer on the application of the provisions of the Parallel Market Listing Rules, the Capital Market Law or implementing its regulations.

The expected aggregate market value ,at the day of listing, of shares to be listed in the Parallel Market-Nomu must be at least 10 million Saudi Riyals. There is no upper limit to which

Currently, there is no fee imposed to companies willing to register and list its shares in the Parallel Market-Nomu for services provided by the Authority related to application for registration of shares, review/ study of application for registration and registration of shares in 2017. However, the Authority is currently studying the application of a fee in early 2018.

The Authority will review the prospectus or shareholders' Circular (as applicable) within (30) days of receiving all information and documentation required by the Parallel Market Listing Rules.

Yes. The issuer's financial advisor, before obtaining the Authority's approval on the prospectus or shareholders' circular (as applicable), may present information on the issuer and its financial statements to a group of Qualified Investors without mentioning the issuer's name, to know to what extent Qualified Investors wish to participate in the subscription for the issuer's shares once offered.

Yes, the Parallel Market Listing Rules imposes less requirements for registration and admission to listing in the Parallel Market-Nomu compared to the requirements imposed in the Listing Rules for registration and admission to listing in the Main Market. Where the key differences between the requirements for registration and admission to listing in the Parallel Market-Nomu and the Main Market revolve around the documents that should be submitted to the Authority, number of years during which the issuer must be carrying on a main activity, either by itself or through one or more of its subsidiaries, when applying for registration and admission to listing, the minimum expected aggregate market value of all shares to be listed, public ownership and number of public shareholders, categories of investors eligible to invest in the market, and continuous obligations on the issuer.

Yes, the issuer whose shares are listed in the Parallel Market-Nomu shall comply with the provisions of part 8 (continuous obligations) of the Listing Rules as per article (28) of the Parallel Market Listing Rules.

The Issuer must provide the Authority and announce to shareholders its interim financial statements or the consolidated interim financial statements (as applicable) as soon as they have been approved and within a maximum of forty five days of the end of the financial period covered by these statements. The Issuer must provide the Authority with annual financial statements and announce them to the shareholders as soon as they have been approved and within a maximum of three months of the end of the financial period covered by these statements. Also, the issuer must provide the Authority and announce to shareholders these annual statements not less than 15 calendar days before the date of convening the issuer's annual General Assembly.

The lock-up period in the Parallel Market-Nomu for any person specified in the prospectus as owning shares in the issuer is twelve months. They may dispose these shares at the end of the twelve month period.

It is not required to obtain the Authority's approval at the end of the lock-up period.