The Capital Market Authority (CMA) called upon relevant and interested persons participating in the capital market to share their feedback on the Draft to develop the regulatory framework for the offering and listing of different classes of shares. The consultation period will last for 30 calendar days, ending on 11/11/1446H, corresponding to 09/05/2025.
The proposed draft aims to develop the regulatory framework, including the enhancement of disclosure requirements related to various types and classes of shares. It also includes regulating disclosure requirements for redeemable shares and disclosures related to the conversion of shares from one type or class to another. This is intended to facilitate the financing of such companies through the capital market, contribute to meeting the financing needs of companies and the economy, and provide a broader range of investment options for investors.
The proposed draft also includes the development of the regulatory framework for capital increases by listed companies, allowing capital to be raised through the registration and offering of a new type or class of shares that has not been previously listed. In addition, it regulates the increase of issued capital within the limits of the authorized capital, thereby enhancing the role of the capital market in capital formation.
The proposed amendments include requiring a person to submit a notification to the Exchange if they own or have an interest in 5% or more of the voting rights of the issuer's shares. Currently, the notification requirement is limited to ownership or interest in 5% or more of the issuer's total shares.
The draft regulatory framework for the offering and listing of different classes of shares comes following the Companies Law, which permits companies to issue various types and classes of shares and grant specific rights or privileges to those classes. The Implementing Regulation of the Companies Law for Listed Joint Stock Companies also include several provisions related to the types and classes of shares.
The CMA emphasized that the comments of relevant and interested persons shall be taken into full consideration for the purpose of approving the final Proposed Amendments, which in turn shall contribute to the aim of enhancing and developing the regulatory environment. Opinions and comments can be received through any of the following:
•The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Canter through the following link: (istitlaa.ncc.gov.sa).
•The prescribed form through the following email: (Laws.Regulations@cma.org.sa)
The Draft can be viewed via the following link:
The Draft Regulatory Framework for the Offering and Listing of Different Classes of Shares
Prescribed form for providing comments