ع

Published on the same date

An Announcement of Publishing The Amended Draft of The Instructions of Book Building Process and Allocation Method in Initial Public Offerings For Public Consultation

​As part of the Capital Market Authority's continuous efforts to develop the capital market, and aiming to enhance the role of the financial market in facilitating financing, increasing the attractiveness of the market to investors and stimulating investment opportunities, and in pursuance to the Authority's program "to Achieve Saudi Vision 2030", and based on the Capital Market Law issued by the Royal Decree Number (M/30) Dated 2/6/1424H, the CMA Board has issued its Resolution to publish the amended draft of the Instructions of Book Building Process and Allocation Method in Initial Public Offerings (IPOs) to obtain the views of the public, specialists and persons interested in it until 7/3/1439H corresponding to 26/11/2017G.

It's worth mentioning that the most significant aspects in which the amended draft is aiming for are; widening the scope of the participating parties in book building which included the legal persons affiliate to one of the GCC, as well as reducing a number of restrictions related to determining the price range and the coverage of an offering by the participating parties. The amended draft also including a change in the mechanism of determining the subscription price by giving the financial advisor in coordination with issuer the authority to specify the subscription price according to the supply and demand with consideration to a number of measures, and the change of the mechanism of share allocation by giving the financial advisor in coordination with issuer the authority to allocate shares as it deem appropriate.

Moreover, the Authority, with full gratitude, would like to receive the opinions and remarks of relevant and interested persons, through any of the following:

  •  E-mail: (Laws.Regulations@cma.org.sa);
  •  Fax: (+966114906460); or
  •  Mail Address: (P. O. Box 87171 Riyadh 11642, to Legal Affairs & Enforcement Deputy – Laws and Regulations Department).

All opinions and remarks will be taken into full consideration in order to finalize the instructions draft.

And the draft instructions can be viewed through the following link:

The Instructions of Book Building Process and Allocation Method in Initial Public Offerings (IPOs)