Arab Sea debuts on Tadawul today

Arab Sea Information Systems Co. will begin trading today, April 15, on the Saudi Stock Exchange (Tadawul) with symbol 7201 under Information Technology sector.

The stock’s daily fluctuation limit will stand at 10%. 

On April 12, 2020, Tadawul approved Arab Sea’s request to transition from Nomu Parallel Market to the main market. The company has SAR 100 million in capital, divided into 10 million shares.

Arab Sea is the sixth company to move from the parallel market to the main market.

Arab Sea’s opening price is SAR 25.55, based on its last close on Nomu.

Arab Sea brings up the number of listed firms on Tadawul to 183, excluding the 17 listed REITs.

Key highlights:

On February 26, 2017, Arab Sea was listed on Nomu with SAR 100 million capital.

The company was incorporated in 1981 with total capital of SAR 1,000,000. It was then converted into a closed joint stock firm with a SAR 100 million in capital.

Arab Sea’s outstanding shares have reached nearly 6.03 million shares, or 60.32% of its total shares (10 million).

The Riyadh-based company creates computer programs for commercial and governmental organizations and provides network solutions and information systems.

Based on the listing rules issued by the Capital Market Authority (CMA), the companies aiming to transition from Nomu to Tadawul should be initially listed on Nomu for two years.

Their board reports should be also disclosed to the public. Those company are required to fully comply with listing regulations on Tadawul, except for market capitalization, as the minimum market cap should stand at SAR 200 million in average six months before submitting transition requests.