RIYADH: Three Saudi firms received regulatory approval to list on Nomu in a single day, underscoring growing investor appetite for the Kingdom’s bourses. 

Zahr Al Khuzama Aluminum, Sahat Almajd Trading, and Quality Education Co. were given the green light by the Capital Market Authority on June 18, marking a rare instance of multiple listings being cleared simultaneously. 

This paves the way for all three companies to offer shares exclusively to qualified investors, with each expected to publish its prospectus ahead of the offerings. 

The surge in simultaneous approvals comes amid broader reforms to Saudi Arabia’s capital markets, as the Capital Market Authority rolls out new frameworks — including regulations for special purpose acquisition companies — to expand financing options and boost private-sector participation. 

An official release stated that Sahat Almajd Co. Trading will float 4.375 million shares on the parallel market, representing 11.11 percent of its capital.  

Quality Education Co. will offer 2.5 million shares, accounting for 20 percent, while Zahr Al Khuzama Aluminum can offer 300,000 shares, also representing 20 percent. 

The approvals highlight the role of Nomu as a streamlined listing venue designed to enable micro, small, and medium-sized enterprises to access capital. With lighter requirements for market capitalization, public float, and disclosure, it offers a more accessible alternative to the main market. 

In 2024, Nomu recorded 28 initial public offerings and three direct listings, raising over SR1.1 billion ($293.2 million).   

The platform has become central to Saudi Arabia’s efforts to deepen its equity markets and support SMEs, which now constitute 30 percent of listed companies in Saudi Arabia.   

The Kingdom is targeting a 35 percent contribution from the SME sector to its gross domestic product by 2030, in line with the Vision 2030 economic diversification plan.  

Investor appetite for listings remains strong. Al Rajhi Capital forecasts 50 to 60 IPOs across Saudi exchanges over the next two years.  

Separately, EY projects 27 IPOs in Saudi Arabia in 2025 — out of 38 corporate listings anticipated across the Middle East and North Africa region — along with 22 fund listings.  

The triple listing approvals came as Nomu posted a dip in market performance but maintained healthy trading activity.   

On June 18 — the same day the CMA cleared the three IPOs — the Nomu index closed at 26,203.84, down from 26,458.24 the previous day.   

Despite the decline, the market recorded a volume of 3.58 million shares traded across 5,651 transactions, reflecting continued engagement from qualified investors.  

Over the past month, Nomu’s index has retreated from a high of 27,499.65 on May 19, with intermittent recoveries.   

Trading volumes have remained relatively stable, averaging around 3.2 million to 4.5 million shares daily.   

The highest daily value traded during this period reached SR50.4 million on June 1, signaling strong liquidity ahead of the CMA’s latest approvals.  

Over the past month, Nomu recorded an average daily trading value of SR36.36 million.

BEIJING: Oil prices surged on Thursday after Israel said it attacked Iranian nuclear sites in Natanz and Arak overnight and as investors grappled with fears of a broader conflict in the Middle East that could disrupt crude supplies.

Brent crude futures rose 88 cents, or 1.15 percent, to $77.58 a barrel by 10:08 a.m. Saudi time, after gaining 0.3 percent in the previous session when high volatility saw prices fall as much as 2.7 percent.

US West Texas Intermediate crude for July rose $1.11, or 1.48 percent to $76.25 a barrel, after settling up 0.4 percent in the previous when it dropped as much as 2.4 percent.

The July contract expires on Friday and the more active August contract rose 92 cents, or 1.25 percent, to $74.42 a barrel.

There is still a “healthy risk premium baked into the price as traders await to see whether the next stage of the Israel-Iran conflict is a US strike or peace talks,” Tony Sycamore, market analyst at IG, said in a client note.

Goldman Sachs on Wednesday said a geopolitical risk premium of about $10 a barrel is justified given lower Iranian supply and risk of wider disruption that could push Brent crude above $90.

Trump on Wednesday told reporters that he may or may not decide whether the US will join Israel in its attacks on Iran. The conflict stretched into its seventh day on Thursday.

As a result of the unpredictability that has long characterised Trump’s foreign policy, “markets remain jittery, awaiting firmer signals that could influence global oil supply and regional stability,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

The risk of major energy disruptions will rise if Iran feels existentially threatened, and the US entry into the conflict could trigger direct attacks on tankers and energy infrastructure, said RBC Capital’s analyst Helima Croft.

Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries, extracting about 3.3 million barrels per day of crude oil.

About 19 million bpd of oil and oil products move through the Strait of Hormuz along Iran’s southern coast and there is widespread concern the fighting could disrupt trade flows.

Separately, the US Federal Reserve kept its interest rates steady on Wednesday but pencilled in two cuts by the end of the year. Chair Jerome Powell said cuts would be “data-dependent” and that it expects accelerated consumer inflation from Trump’s planned import tariffs.

Lower interest rates would stimulate the economy, and as a result demand for oil, but that could exacerbate inflation.