How an IPO works on the Saudi Exchange (Tadawul): step by step

The seven steps

1. 1.Get ready

   Close the gaps this assessment finds: board and committees, audited accounts, Zakat and tax, licences and contracts. Convert to a joint stock company if you are not one yet. Who: Your board and management, with governance and tax advisers.

2. 2.Appoint your advisers

   A financial adviser licensed by the CMA leads the process. You also need a legal adviser and an auditor registered with the CMA, and usually financial due-diligence and market-study consultants. Who: Your board.

3. 3.Due diligence, valuation and equity story

   Advisers examine your legal, financial and commercial position, test the business plan, and build the valuation and the story you will tell investors. Who: Financial adviser, legal adviser, due-diligence consultants.

4. 4.Prospectus and applications

   The prospectus is drafted. The application to register and offer the shares goes to the CMA, and the listing application goes to the Saudi Exchange. Who: Financial adviser and legal adviser, signed off by your board.

5. 5.Regulatory review

   You file with the CMA and the Saudi Exchange together. The Exchange decides on the listing application, conditional on the CMA's approval, and the CMA reviews the offer. Each period runs from a complete file, so quick, complete answers to questions keep the timetable. Who: CMA and Saudi Exchange.

   • Exchange decision on the listing application: 10 days from a complete file

     Source: Listing Rules Art. 20(b)

   • CMA review, Main Market: 45 days from a complete file (CMA days are business days)

     Source: Offer of Securities and Continuing Obligations Rules Art. 30(b)

   • CMA review, Nomu: 30 days from a complete file (CMA days are business days)

     Source: Offer of Securities and Continuing Obligations Rules Art. 85(b)

   • CMA approval must come within 12 months of the Exchange's conditional approval

     Source: Listing Rules Art. 20(i)

6. 6.The offering

   After CMA approval the prospectus is published. On the Main Market, institutions bid in a book-building that sets the price, then individuals can subscribe, and the offer must be fully underwritten. On Nomu the shares go to qualified investors only. Who: Financial adviser, lead manager and underwriters.

   • Prospectus published at least 14 days before the offer, Main Market

     Source: Offer of Securities and Continuing Obligations Rules Art. 31(a)

   • Prospectus published at least 14 days before the offer, Nomu

     Source: Offer of Securities and Continuing Obligations Rules Art. 86(a)

7. 7.Listing day

   Your shares start trading on the Saudi Exchange. Shareholders with 5% or more named in the prospectus cannot sell for a set period from the first trading day. Who: Saudi Exchange and the Securities Depository Center (Edaa).

   • Lock-up for holders of 5% or more: 6 months from the first trading day, Main Market

     Source: Offer of Securities and Continuing Obligations Rules Art. 72(a)

   • Lock-up for holders of 5% or more: 12 months from the first trading day, Nomu

     Source: Offer of Securities and Continuing Obligations Rules Art. 94(5)

How long does it take?

The CMA and Saudi Exchange texts we checked set no total time from appointing advisers to the first trading day, so none is shown here. Only the periods those texts state appear below, each with its article. Stages with no stated period show none.

Five ways to reach the market

• Main Market IPO

  Open to all investors. Market value of SAR 300 million or more, 30% held by the public, 200 public shareholders, three years of audited accounts, and a fully underwritten offering.

  Source: Listing Rules Art. 7

• Nomu offering

  For qualified investors. Market value of SAR 50 million or more, 50 public shareholders, and 20% public (or 10% worth SAR 50 million), with one year of audited accounts.

  Source: Listing Rules Art. 43

• Nomu direct listing

  List existing shares without an offering. Market value of SAR 100 million or more, a financial adviser, and either the Nomu liquidity tests at listing or a 12-month liquidity plan.

  Source: Listing Rules Art. 45

• Merger with a listed SPAC

  New in 2026: a private Saudi company that meets the Nomu conditions can reach Nomu by combining with a listed special purpose acquisition company.

  Source: Offer of Securities and Continuing Obligations Rules Art. 79

• Moving from Nomu to the Main Market

  After two years on Nomu: an average market value of SAR 200 million over 12 months, no accumulated losses, the Main Market liquidity tests, and full compliance with the Corporate Governance Regulations.

  Source: Listing Rules Art. 46

Common questions

How long does the CMA take to review an IPO application?

CMA review, Main Market: 45 days from a complete file (CMA days are business days). CMA review, Nomu: 30 days from a complete file (CMA days are business days). The Exchange decides on the listing application within 10 days from a complete file. CMA approval must come within 12 months of the Exchange's conditional approval.

Is there a fixed total time from advisers to first trading day?

The CMA and Saudi Exchange texts we checked set no total time from appointing advisers to the first trading day, so none is shown here. Only the periods those texts state appear below, each with its article. Stages with no stated period show none.

Who leads an IPO?

A financial adviser licensed by the CMA leads the process. You also need a legal adviser and an auditor registered with the CMA, and usually financial due-diligence and market-study consultants.

When must the prospectus be published?

Prospectus published at least 14 days before the offer, Main Market. Prospectus published at least 14 days before the offer, Nomu.

Can major shareholders sell right after listing?

Lock-up for holders of 5% or more: 6 months from the first trading day, Main Market. Lock-up for holders of 5% or more: 12 months from the first trading day, Nomu.