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Saudi IPO glossary: free float, lock-up, book-building, Nomu and more

The words used around a Saudi listing, in alphabetical order. Each definition repeats only what the CMA and Saudi Exchange texts behind this site say. Where the English and Arabic texts differ, the Arabic official text prevails.

Rules checked against the official texts on 12 October 2026.

Terms

  • Book-building

    Institutions bid for shares within a price range; their demand sets the final offer price.

  • Business days

    CMA review periods count business days, from the moment the file is complete.

  • CMA (Capital Market Authority)

    The regulator that reviews and approves offers of securities and licenses financial advisers and underwriters.

  • Corporate Governance Regulations

    The CMA regulation on boards, committees and policies. Fully binding on the Main Market; on Nomu only a few articles bind.

  • Direct listing

    Listing on Nomu without an offering. It needs an expected market value of at least SAR 100 million and a financial adviser.

  • Edaa (Securities Depository Center)

    The depository involved on listing day, alongside the Saudi Exchange.

  • Free float

    Shares held by the public, as opposed to founders, directors and other major holders.

  • Listing Rules

    The Saudi Exchange rules that set the listing criteria, including Articles 7 (Main Market) and 43 (Nomu).

  • Lock-up

    A period after listing during which major shareholders may not sell their shares.

  • Main Market

    The Saudi Exchange market open to all investors. It has the higher listing minimums.

  • Nomu

    The Saudi Exchange's parallel market for qualified investors, with lower listing minimums.

  • OSCOs

    The CMA's Rules on the Offer of Securities and Continuing Obligations: track record, audited accounts, review periods, lock-ups and reporting.

  • Prospectus

    The approved document that tells investors everything material about the company and the offering.

  • Qualified investor

    Who may buy shares on Nomu: institutions and funds, plus individuals who meet one test, such as SAR 20 million of trades in a year, net assets of SAR 5 million, three years in the financial sector, or the CME-1 certificate.

  • Saudi Exchange (Tadawul)

    The exchange that decides on the listing application, conditional on the CMA's approval.

  • Substantial shareholder

    A person who owns 5% or more of the company's shares.

  • Underwriting

    On the Main Market the offer must be fully underwritten. Nomu does not require it.

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A self-assessment guide, not legal or investment advice. Confirm every point with your advisers, the CMA and the Saudi Exchange.