Saudi Exchange issuer guidance states that a company seeking admission to the Main Market must have a minimum market capitalization of SAR 300 million. A financial model can help an issuer explore how share count and valuation assumptions affect an implied equity value, but it cannot by itself certify that the company meets the legal listing test. The detailed calculation mechanics and the date on which capitalization is assessed are not established by the Exchange summary; confirm them with a Saudi IPO financial adviser against the applicable rules.
What the SAR 300 million requirement means
Saudi Exchange lists “Minimum Market Cap | SAR 300 million” for the Main Market in its issuer guidance. This is a market-capitalization requirement—not a target for revenue, profit, enterprise value, or cash raised in the IPO. The source presents the figure as a listing requirement but does not spell out the detailed rule-level calculation or its measurement date.
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In a planning workbook, an issuer can show assumed shares outstanding and an assumed per-share value, then calculate an illustrative equity value. Keep those inputs and outputs visible and distinguish them from enterprise value, proceeds, revenue, and free float. State explicitly which capitalization definition the model assumes; have an adviser confirm whether that definition and its inputs match the applicable regulatory test.
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How to use a financial model for readiness planning
Use the model to test assumptions and expose sensitivities, not to declare eligibility. The Exchange’s summary does not prescribe a modeling template or valuation method.
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- Label the test. Identify the capitalization definition used in the workbook and flag that the legal calculation method and reference date need confirmation.
- Separate inputs from outputs. Show assumed shares outstanding and the valuation assumptions as inputs; show the resulting implied equity value separately. Do not treat IPO proceeds or enterprise value as interchangeable with market capitalization.
- Run scenarios. Build downside, base, and upside cases around the issuer’s actual valuation assumptions. Make each assumption visible and avoid implying that a selected case or forecast guarantees compliance.
- Track non-valuation criteria separately. Use distinct checklist rows for operating history, the percentage of shares offered, and public-shareholder count rather than folding them into the valuation output.
- Confirm the regulatory interpretation. Ask a Saudi IPO financial adviser to check the current rules, the calculation mechanics, and the relevant measurement date before treating the model as an eligibility assessment.
Main Market and Nomu requirements compared
Saudi Exchange presents Nomu – Parallel Market as a distinct route with different criteria, not an automatic workaround for the Main Market threshold.
| Requirement | Main Market | Nomu – Parallel Market |
|---|---|---|
| Minimum market capitalization | SAR 300 million, according to Saudi Exchange issuer guidance (publication year not stated). | SAR 50 million, according to Saudi Exchange issuer guidance (publication year not stated). |
| Operating or financial history | At least three financial years undertaking a main activity under substantially the same management. | At least one year of operational and financial performance. |
| Shares offered or public ownership | At least 30% of shares offered. | At least 20% of issued shares, or shares worth SAR 50 million with at least 10% public ownership of the class, as summarized by the Exchange. |
| Public shareholders | At least 200. | At least 50. |
| Investor access | Main Market. | Investment is restricted to qualified investors. |
| Transfer from Nomu to Main Market | Not applicable. | The Exchange overview describes two calendar years since Nomu listing and a SAR 200 million minimum average market capitalization over the preceding twelve months as the capitalization exception when meeting Main Market requirements. |
Figures and criteria are summarized in the Saudi Exchange’s issuer guidance and Nomu overview. The Exchange FAQ result reports a different Nomu minimum—SAR 10 million—in its FAQ. Because the issuer guidance and Nomu overview both state SAR 50 million, this comparison uses that figure; verify current rules with the Exchange and an adviser before relying on it.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to confirm before relying on the model
The cited Exchange pages summarize admission requirements, but they do not establish the detailed CMA rule provision, the precise capitalization reference date, permitted adjustments, or calculation conventions. Those details can determine whether an illustrative model corresponds to the actual eligibility test. Have a Saudi IPO financial adviser verify the live rules and review the model’s assumptions before using its output in a listing decision or investor materials.
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