2020 Q3 Report En · Page 7

 
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The Listing of “Saudi White Cement Co.”, as the first direct 
listing on Parallel Market 
The Nomu – Parallel Market witnessed on Wednesday 02 
September 2020, the listing and trading shares of “Saudi White 
Cement Co.” as the first direct listing, with a 20% daily price 
fluctuation limit per share. Last June, the Capital Market Authority 
announced the issuance of its board’s decision to approve the 
Saudi White Cement Company’s request to register its shares for 
the purpose of direct listing on the parallel market. 
Approval of the Instructions on Issuing Depositary Receipts 
Out of the Kingdom 
The CMA Board issued its Resolution to approve the Instructions 
on Issuing Depositary Receipts out of the Kingdom 
(“Instructions”). This comes after the CMA has published the draft 
instructions on its website for public consultation for a period of 
(30) calendar days.  
The instructions aim to set out the requirements and conditions 
for issuing depositary receipts out of the Kingdom for shares 
issued in the Kingdom and listed in the Exchange, or shares issued 
in the Kingdom and its issuer has made the necessary 
arrangements for listing them in the exchange. This includes 
setting the requirements for obtaining the Authority's approval on 
issuing depositary receipts out of the Kingdom, and the 
obligations of the issuers and depositary banks in this regard. 
Allowing Foreigners to Invest Directly in Debt Instruments 
The CMA Board issued its resolution on which included allowing 
foreigners, residents, and non-residents, to invest directly in listed 
and non-listed debt instruments. The CMA Board resolution 
included the following: 
a) All foreign legal and natural persons may invest directly in debt 
instruments. 
b) A non-resident foreign person may not invest in the market as 
a direct investor in listed debt instruments and as a qualified 
foreign investor or an ultimate beneficiary in swap agreements at 
the same time. 
c) A foreign person who invests directly in debt instruments may 
not convert such instruments into shares listed in the main 
market, unless such person is among the categories of investors 
who are allowed to invest directly in the shares listed in the main 
market, or becomes an ultimate beneficiary in a swap agreement 
in accordance with the provisions of the Authority's instructions 
on swap agreements. 
It is noteworthy that the Capital Market Authority worked on 
preparing a guide that aims to clarify the investment channels 
available for non-resident foreign investors, the methods of 
investing in listed securities, and the procedures of investment 
account opening. The guide can be viewed through the CMA’s 
website. 
The Capital Market Authority Grants Two Requests for a
Financial Technology Experimental Permit 
Based upon the Capital Market Law issued reference to the 
Financial Technology Experimental Permit Instructions issued by 
CMA which aims to provide a regulatory framework that is 
conducive for the innovation of Financial Technology (FinTech) 
in the capital market within the Kingdom. The CMA Board of
Commissioners issued its resolution to grant Mekyal Financial 
Company a Financial Technology Experimental Permit (ExPermit)
to create an equity crowdfunding platform. 
Based on this permit, Mekyal Financial Company will be able to
experiment the crowdfunding FinTech which allows investors to 
participate in funding small and medium size enterprises in 
exchange for shares in such enterpr