In continuance of the Capital Market Authority's role in developing and regulating the capital market and seeking to make the capital market environment more stable, and in line with the Saudi Vision 2030, and based on the Capital Market Law issued under Royal Decree No. (M/30) Dated 02/06/1424 H, the CMA Board issued its Resolution to approve the Instructions on the Price Stabilization Mechanism for Initial Public Offerings ("Instructions") to be effective from its publication date.
The Instructions aims to regulate the price stabilization activities for the shares of newly listed companies on the Exchange after the initial public offering, and determine the requirements to be met by the price stabilisation manager, its obligations when conducting the Price Stabilisation Mechanism, and the exemptions related to the actions taken during the Price Stabilisation Period.
It should also be noted that the views of the public, specialists and interested parties were taken into consideration when preparing the Instructions.
The Instructions can be viewed via the following links:
Arabic:
التعليمات الخاصة بتنظيم آلية الاستقرار السعري للطروحات الأوليةEnglish:
The Instructions on the Price Stabilisation Mechanism for Initial Public Offerings