​The Capital Market Authority ("CMA") invited specialists, interested parties and the public to provide their comments and observations on the Draft Instructions on the Price Stabilisation Mechanism for Initial Public Offerings ("Draft Instructions"), which is available on its CMA's  official website for a period of 30 calendar days from of its publication. The CMA assured that all received comments and observations will be taken in consideration for the purpose of adopting the final version of the Instructions.

The CMA announced in its statement that the Draft Instructions aims to regulate the price Stabilisation activities on shares of companies newly listed in the Market, after the initial public offering. In addition to regulating the price Stabilisation manager activities and determined the requirements needed to be met in it, beside regulating the relevant disclosures, the price Stabilisation period and the maximum percentage of the total number of  shares allowed for over-allotment option.

The CMA added that this Draft Instruction comes in continuance to its efforts to develop the capital market, including the regulation of the price Stabilisation activities in line with the best international practices and in light of the powers vested in the CMA under the Capital Market Law in relation to the price Stabilisation.

The Draft Instructions include the provisions related to the price stabilization, the Stabilisation manager obligations, the controls over the price stabilization process and the regulation of the relationship between the price Stabilisation manager and the issuer and relevant parties. The Draft Instructions also include provisions to regulate the creation and maintaining of price Stabilisation process record by the price Stabilisation manager.

The Draft Instructions can be viewed via the following link:

The Draft in Arabic:

The Draft in English: