Okaz/Saudi Gazette

JEDDAH — The shares of Jahez company were among the most listed shares in the Saudi Parallel Stock Market (Nomu), and that resulted in decreasing the percentage of its free float shares.

The number of free or public float shares of the leading Saudi food delivery firm decreased by 10.91 percent during the first weeks of the first quarter of 2023, compared to the fourth quarter of 2022, according to a monitoring conducted by Okaz/Saudi Gazette.

It was revealed that many companies listed on Nomu recorded a noticeable change in the number of their free float shares, and the number of free shares often increases when there is no demand for the company’s shares from the part of large investors, while the number decreases when large investors desire to own shares of that company due to their convictions in its future success.

According to the monitoring, the shares of Jahez company were the most declining stock on Nomu in the percentage of its free shares at the beginning of the first quarter of 2023 compared to the fourth quarter of 2022. There was a change in the status of the company’s 192,000 shares from free to non-free while Molan Steel company came second, with a decline in the percentage of its free shares by 10.04 percent, equivalent to turning 178,281 free shares into non-free.

The free shares of three companies declined by a rate ranging between 5-9 percent. They are Sure Global Tech Co., Albabtain Food, and Future Care, while the free shares of three companies decreased by a rate ranging between 1-5 percent, which are Saudi Azm, Taiba, and Al-Waha REIT. The free shares decreased by less than one percent as far as six companies are concerned and they are Rawasi, Banan, Jazz, Ladan, Al-Hasoob, and MOBI.

Free float, also known as public float, refers to the shares of a company that can be publicly traded and are not restricted. The term is used to describe the number of shares that is available to the public for trading in the secondary market.

The Saudi Stock Exchange (Tadawul) disclosed that non-free shares are shares owned by any government agency with a percentage of 5 percent or more in the company, or restricted shares that are not allowed to be traded during a period of time, as well as shares due through repurchase by a listed company, in addition to shares owned by a member of the board of directors, and the shares representing controlling ownership of 30 percent or more.

Nomu is a parallel equity market that was launched on the Saudi Stock Excahange (Tadawul) in February 2017 with lighter listing requirements. Nomu serves as an alternative platform for companies to be publicly listed.