First Avenue approves move from Nomu to TASI

Logo of First Avenue Real Estate Development Co.

First Avenue Real Estate Development Co. said its board of directors approved on Nov. 10, the company's transfer from the Nomu-Parallel Market to the Main Market (TASI).

In a statement to Tadawul, the company said the transfer remains subject to the approval of Tadawul and the fulfillment of all requirements stipulated in the Listing Rules.

In its investor presentation, the company said it has entered the stage of fulfilling the regulatory requirements in preparation for submitting the transfer application, followed by obtaining the necessary regulatory approvals.

According to a preliminary assessment prepared by an independent financial advisor, the company has met seven of the 11 requirements for the transfer. Two requirements will be assessed upon submission of the application, while work is still underway to fulfill the remaining two requirements.

The company noted that the key outstanding requirements relate to liquidity and additional criteria. Public ownership, calculated in accordance with Tadawul criteria, stands at 22.99%, compared to the minimum required 30% for the transfer.

The total number of public shareholders stands at 583, of whom 361 are counted for the purpose of meeting the criteria, while 222 are excluded, as each holds fewer than 1,000 shares.

The company explained that reaching 600 or more eligible shareholders would result in the waiver of the ownership concentration requirement, while the minimum public ownership requirement of 30% would remain applicable.

The company’s average market capitalization over the past 12 months reached approximately SAR 1.12 billion over 249 trading sessions through Nov. 8, exceeding the minimum required threshold of SAR 200 million, the statement said.

First Avenue is also preparing the transfer document and appointing financial and legal advisors, in addition to completing the required disclosures and procedures ahead of submitting the transfer application.

The transfer to the Main Market remains conditional on fulfilling the requirements and obtaining the relevant approvals, the company noted, adding that it will announce any material developments in due course.