Saudi Arabia’s capital markets have emerged as one of the most active IPO destinations globally, with 126 companies raising over SAR 80 billion between 2021 and 2025. Yet many corporate finance professionals still wrestle with a fundamental strategic question: list on TASI or Nomu?
This is not a regulatory checkbox. It is a decision that shapes valuation, cost structure, investor access, and long-term capital markets trajectory. This guide decodes the two-tier market structure, examines real performance data from recent listings, and provides a practical framework for determining the optimal venue.
The Two-Tier Market Structure
Saudi Arabia operates a deliberately bifurcated capital market - each tier designed to serve a distinct company profile and investor base.
TASI - The Main Market
TASI serves as the primary listing venue for established companies with proven track records and substantial capital requirements.
Key characteristics (2024–2025 data):
| Metric | TASI |
|---|---|
| Minimum market capitalisation | SAR 300M (SAR 500M+ typical) |
| Average IPO size (2025) | SAR 1,115M |
| Annual listings | 13–14 |
| Total market cap | SAR 9.56 trillion (January 2026) |
| Investor access | Universal - retail, institutional, and foreign |
Typical TASI candidate profile:
- Market cap exceeding SAR 500M
- Three or more years of audited financials with consistent profitability
- Established operations in mature industries
- Capital needs exceeding SAR 300M
- Ready for stringent governance - independent directors, audit committees
Notable 2024–2025 TASI listings:
- Flynas (Aviation): SAR 4.1B - first Gulf airline IPO in 20 years
- Fakeeh Care (Healthcare): SAR 2.9B
- Saudi Parts Store (Consumer): SAR 1.96B
- Al Baha Investment (Financial Services): SAR 1.88B
- Alramz (Retail): SAR 1.5B
Nomu - The Parallel Market
Nomu caters to SMEs, growth-stage companies, and founder-led businesses that need public market access without the full regulatory burden of the main market.
Key characteristics (2024–2025 data):
| Metric | Nomu |
|---|---|
| Minimum market capitalisation | SAR 10M (SAR 100M+ more realistic) |
| Average IPO size (2025) | SAR 53M |
| Annual listings | 24–28 |
| Total market cap | SAR 40.5 billion (January 2026) |
| Investor access | Qualified investors pre-listing; universal post-listing |
Typical Nomu candidate profile:
- Market cap between SAR 50M and SAR 300M
- Two or more years of audited financials (profitability not mandatory)
- Emerging business model in a scaling phase
- Capital needs of SAR 30M–200M
- Lighter compliance burden preferred during growth phase
Notable 2024–2025 Nomu listings:
- Alwazn Almithaly (Consumer Goods): SAR 346M
- Tharwah (Logistics): SAR 372M
- Arabica Star (Consumer Goods): SAR 230M
- Khaldi Logistics: SAR 75M
- RATIO (Industrial): SAR 50M
Market Comparison: The Numbers
| Metric | TASI | Nomu | Ratio |
|---|---|---|---|
| Average IPO size | SAR 1,115M | SAR 53M | 21:1 |
| Annual listings | 13–14 | 24–28 | ~1:2 |
| Total market cap | SAR 9.56T | SAR 40.5B | 236:1 |
| Avg daily volume | SAR 12–45M | SAR 0.8–3M | 15:1 |
| Min market cap | SAR 300M | SAR 10M | 30:1 |
| Free float requirement | 30% | 20% | 1.5:1 |
| Institutional oversubscription | 80–150x typical | 150–500x typical | Higher on Nomu |
| Foreign ownership (2025) | 4.87% (SAR 466B) | 1.49% (SAR 0.6B) | 3.3:1 |
TASI dominates by market cap and transaction size, but Nomu processes nearly twice as many listings annually - reflecting its role as an entry point for emerging companies rather than a lesser version of the main market.
The Graduation Pathway: Nomu to TASI
One of the most strategically important features of the two-tier system is the graduation mechanism. Successful Nomu companies can transfer to TASI once they meet eligibility criteria - without necessarily conducting a new offering.
Transfer requirements:
- Minimum two years listed on Nomu
- SAR 200M average market cap during the six months preceding the application
- Compliance with all TASI governance and disclosure standards
- Board approval with public disclosure
Recent graduation examples (2024–2026):
- Saudi Azm (2025): +25% in the first six months post-transfer
- Obeikan Glass (July 2025)
- Nofoth Food Products (January 2026)
- Alwasail (January 2026)
Historical data covering 21 companies that have transferred from Nomu to TASI shows an average 15–22% valuation uplift in the six to twelve months following the transfer. This graduation pathway transforms Nomu from a “smaller exchange” into a genuine strategic stepping stone for mid-cap companies with growth ambitions.
2025 Market Performance: A Stress Test
2025 was a down year for Saudi equities - and the performance divergence between the two markets was instructive.
| Metric | TASI | Nomu |
|---|---|---|
| Index return (2025) | -6.8% | -26% |
| IPO cohort 6-month performance | +4.2% average | -15% average |
| Trading above offer (6 months) | 65% of cohort | 42% of cohort |
The critical observation: during market stress, Nomu’s structural illiquidity amplified the downside - the Nomu index fell 3.8 times worse than TASI. This liquidity risk is a core consideration in venue selection, particularly for companies that plan to raise follow-on capital.
Oversubscription: Demand by Venue
Saudi IPOs consistently generate significant oversubscription, but the dynamics differ between markets.
TASI (2025):
- Saudi Parts Store: 241x institutional
- Fakeeh Care: 162x institutional
- Flynas: 100x institutional, 350% retail
Nomu (2025):
- Khaldi Logistics: 1,949% (19.5x)
- Alwazn Almithaly: 450x institutional
- Arabica Star: 208x institutional
Nomu often shows higher oversubscription multiples in percentage terms - but this reflects smaller offer sizes rather than greater investor enthusiasm. When a SAR 75M Nomu offering attracts SAR 1.5B in institutional orders, the ratio appears dramatic. The same demand level on a SAR 1B TASI offering would register as more modest. The denominator matters.
October 2025 CMA Change: 30% Retail Allocation Guidance
The Saudi Capital Market Authority (CMA) introduced guidance in October 2025 encouraging issuers to allocate approximately 30% of shares to retail investors - a shift from the prior practice where institutional investors received 70–80% of allocations.
Strategic implications:
- Companies need to build retail brand appeal, not just institutional investment narratives
- Consumer-facing businesses gain an advantage (alignment between customers and shareholders)
- Retail oversubscription becomes a stronger market confidence signal
- Broader shareholder bases tend to improve aftermarket liquidity
This shift benefits companies with strong brand recognition - retail, healthcare, aviation, and consumer goods sectors - more than industrial B2B players.
February 2026: Foreign Investor Liberalisation
Effective 1 February 2026, the CMA eliminated the Qualified Foreign Investor (QFI) concept, granting direct foreign investor access to TASI for the first time.
What changed:
- No QFI licence required for TASI investment
- Simplified account opening for non-residents
- Nomu remains subject to qualified investor restrictions (no change)
Current foreign ownership (January 2026):
- TASI: 4.87% (SAR 466B of SAR 9.56T market cap)
- Nomu: 1.49% (SAR 0.6B of SAR 40.5B market cap)
For companies targeting global institutional capital, TASI now provides meaningfully improved access, while Nomu remains predominantly domestic in its investor base.
IPO Cost Structure by Venue
| Cost Category | TASI | Nomu |
|---|---|---|
| Underwriting fees | 1.5–2.5% | 2.5–4.0% |
| Legal & advisory | 0.5–1.0% | 1.0–2.0% |
| Audit & due diligence | 0.3–0.8% | 0.5–1.5% |
| Marketing & roadshow | 0.2–0.5% | 0.3–0.8% |
| Regulatory & listing fees | 0.2–0.4% | 0.3–0.6% |
| Total range | 2.7–5.2% | 4.6–8.9% |
Nomu costs more as a percentage of offer size because fixed costs are spread over a smaller base, and underwriters price in additional compensation for illiquid aftermarket conditions. In absolute terms, a SAR 50M Nomu offering costs roughly SAR 2.3–4.5M - manageable, but not trivial.
A practical floor: expect minimum professional fees of SAR 3–5M regardless of deal size, which is why offerings below SAR 30M are rarely economical.
Venue Selection Framework
Consider TASI when:
- Current or projected market cap exceeds SAR 500M
- Three or more years of audited financials, consistently profitable
- Capital raise needed exceeds SAR 300M
- Foreign investor access is a strategic priority
- Company is ready for full TASI governance from day one
- Strong consumer brand with retail investor appeal
- Vision 2030-aligned sector (tourism, healthcare, logistics, entertainment)
Consider Nomu when:
- Market cap is in the SAR 50M–300M range
- Two years of audited financials (profitability not yet established)
- Initial capital need is SAR 30M–200M
- Lighter compliance burden preferred during the execution phase
- Planning to pursue TASI transfer within two to three years
- Growth-stage business building a public market track record
The Nomu-first approach for SAR 150M–400M companies
For companies in this market cap range, a phased approach is worth modelling explicitly:
- Year 1: List on Nomu (20% float, lighter governance)
- Years 2–3: Execute the growth plan with Nomu’s lower compliance burden
- Year 3: Graduate to TASI (no new offering required at this stage)
- Year 4: Consider a secondary offering on TASI at a potentially higher valuation (capturing any re-rating from the transfer)
This approach can allow companies to build a public market track record before entering the more demanding environment of the main market.
Sector Performance Trends (2024–2025)
TASI sector activity:
- Aviation: Flynas SAR 4.1B
- Healthcare: Fakeeh Care SAR 2.9B, Almoosa Health SAR 1.26B, Medgulf SAR 900M
- Consumer Discretionary: Alramz SAR 1.5B, Saudi Parts Store SAR 1.96B
- Financial Services: Al Baha Investment SAR 1.88B
Nomu sector activity:
- Logistics: Tharwah SAR 372M, Khaldi Logistics SAR 75M
- Consumer Goods: Arabica Star SAR 230M, Alwazn Almithaly SAR 346M
- Industrial: RATIO SAR 50M and similar manufacturing companies
- Food/Beverage: Nofoth (graduated to TASI January 2026)
Pattern: Capital-intensive sectors (aviation, healthcare facilities) gravitate to TASI; asset-light scaling businesses (logistics, consumer goods) often start on Nomu and graduate later. Technology companies have used both - Jahez raised SAR 1.6B on Nomu in 2021 (the largest Nomu IPO on record) before the market matured further.
Timing Within the Year
Historical data on IPO timing shows Q2 (April–June) has accounted for the highest deal volume - roughly 35% of 2025 listings - driven by post-holiday institutional liquidity and peak roadshow attendance. The Ramadan period tends to see reduced retail participation, which matters more after the CMA’s 30% retail allocation guidance. Companies that need strong retail response generally avoid launching during this period.
Key Takeaways
- Size is the primary driver: Market cap below SAR 300M points to Nomu; above SAR 500M points to TASI
- Liquidity is structural: TASI’s 15–30x higher trading volumes translate into measurable valuation advantages over comparable Nomu peers
- Graduation is real and meaningful: 21 historical transfers averaged 15–22% valuation uplift within six to twelve months
- 2025 stress test: Nomu fell 3.8x worse than TASI during the market decline, validating the structural liquidity risk
- Foreign access matters now: February 2026 liberalisation gives TASI direct global institutional access; Nomu remains domestically focused
- Cost structure: Nomu costs 2–4 percentage points more as a share of offer size, though absolute costs remain lower for smaller deals
- The phased path works: For SAR 150M–400M companies, the Nomu-to-TASI graduation pathway deserves serious modelling
Sources:
- Argaam Financial Services (2026). “2025 IPOs: 13 listings on TASI, 24 on Nomu”
- Saudi Capital Market Authority (CMA). Official listing data and regulatory announcements
- Tadawul (Saudi Exchange). Market capitalisation and trading volume data (January 2026)
- ANB Capital & Riyad Capital. Market analysis reports (2025–2026)
- Blominvest. “A deep dive into the Saudi Parallel Market (Nomu)” (2022)
This article is for educational and informational purposes only. It does not constitute investment advice, a financial promotion, or a recommendation to take any particular action. All data is sourced from publicly available information and is presented as of the dates noted. Readers should verify all information and consult an appropriately licensed professional before making any financial or corporate decisions.
Abdul Gaffar Mohammed, CFA
Treasury & Investment Professional