In continuance to the Capital Market Authority’s role in regulating and developing the Capital Market, and in line with (the Financial Sector Development Program) one of the main programs to achieve the objectives of Saudi Vision 2030, and in accordance with the Capital Market Law issued by Royal Decree number (M/30) dated 02/06/1424H, the CMA Board issued its resolution to adopt the amended Rules on the Offer of Securities and Continuing Obligations, the amended Instructions for Companies Announcement, the amended Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority, and approving the amended Listing Rules and the amended Glossary of Defined Terms Used in the Exchange Rules, and they shall be effective upon its publication date, except for paragraphs (1) and (3) of Article 90 of the Rules on the Offer of Securities and Continuing Obligations, which will enter into force starting from 01/01/2020G. Further, The CMA Board issued its resolution to adopt and publish the amended Instructions for Book Building Process and Allocation Method in Initial Public Offerings, and that it shall be affective from its publication date.
The CMA Board's resolution also stipulates that the investments limits imposed by the Capital Market Law and its implementing regulations on the investments of foreign investors shall not apply to the investments of foreign investors (of all categories, whether resident or non-resident) in the shares of the foreign issuer that are listed on the Main Market in accordance with the Listing Rules. In addition, the aforementioned resolution also provides that all categories of foreign investors are allowed to invest directly in the shares of the foreign issuer whose shares are listed on the Main Market in accordance with the Listing Rules.
These amendments come in line with the Authority’s objectives to regulate and develop the Capital Market, as well as enhancing its confidence in it and attracting investments towards it.
It is worth mentioning that the Authority, when amending the Rules on the Offer of Securities and Continuing Obligations, took into consideration carrying out the public consultation from specialists and interested parties, and it also considered the received public views in order to achieve the aimed objectives of these amendments. Among the main amendments that the Authority made upon public consultation – for example – were adding a requirement to determine the mechanism by which the guiding price determination was based within the available documents in Annex 20 (a) related to registration documents for the purpose of direct listing in the Parallel Market.
The amended Rules on the Offer of Securities and Continuing Obligations, the amended Instructions for Companies Announcements, the amended Instructions for Book Building Process and Allocation Method in Initial Public Offerings, and the amended Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority can be viewed via the following link:
Instructions for Book Building Process and Allocation Method in Initial Public Offerings (IPOs)
Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority
RULES ON THE OFFER OF SECURITIES AND CONTINUING OBLIGATIONS