In continuance of the role of the Authority in developing and regulating the capital market and seeking the stability of the capital market's environment, and in line with Saudi Arabia’s Vision 2030, and in accordance with the Capital Market Law issued by the Royal Decree No. (M/30) Dated 02/06/1424H, the CMA Board has issued its Resolution to publish the Draft Instructions on the Price Stabilisation Mechanism for Initial Public Offerings ("Draft Instructions"), to obtain the views of public, specialists and interested parties for a period of (30) calendar days ending on 25/10/1439H corresponding to 9/7/2018G.
It is worth noting that the main objectives of the Draft Instructions is to regulate the price Stabilisation activities on shares of companies newly listed in the market, after the initial public offering. The Draft Instructions regulates also the price Stabilisation manager activities and determined the requirements needed to be met in it. In addition, it clarifies the relevant disclosures, the price Stabilisation period and the maximum percentage of the total number of shares allowed for over-allotment option.
Moreover, the Authority, with full gratitude, would like to receive the opinions and remarks of relevant and interested persons, through any of the following channels:
- Email (Laws.Regulations@cma.org.sa);
- Fax number (+966114906460); or
- Mail address (P.O. Box 87171 Riyadh 11642, CMA Deputy for Legal Affairs and Enforcement – Laws and Regulations Department).
All opinions and remarks will be taken into consideration in order to finalize the Instructions.
The Draft Instructions can be viewed via the following link:
The Draft in Arabic:
مشروع التعليمات الخاصة بتنظيم آلية الاستقرار السعري للطروحات الأولية The Draft in English:
Instructions on the Price Stabilisation Mechanism for Initial Public Offerings