As part of the Capital Market Authority's ("CMA") strategic objectives to regulate and develop the capital market, and based on the Capital Market Law issued by Royal Decree No. (M/30) dated 2/6/1424 H, the CMA Board issued its resolution to publish the draft Amendments to the Instructions for Book Building Process and Allocation Method in Initial Public Offerings (IPOs)   ("Draft Amendments") for public consultation for a period of (30) calendar days ending on 13/09/1443H corresponding to 14/04/2022G.

The main elements of the Draft Amendments are:

1.Developing the provisions regulating the participating parties in the book building process, including allowing the financial advisor to determine the parties that are entitled to participate in the book building process from the parties stipulated in the Instructions, provided that public funds are among them.

2.Determining the responsibilities of the financial advisor in relation to verifying the financial solvency of the participating entities, and their ability to pay the value of the shares requested in the bidding participation application when allocated.

3.Developing the provisions regulating the shares allocation for participating entities after completing the book building.

 
The CMA, with full gratitude, would receive the opinions and comments of relevant and interested persons, through any of the following:

a)The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center, through the following link: (istitlaa.ncc.gov.sa).

b)The prescribed form through the following email: (Laws.Regulations@cma.org.sa).

 
All comments will be taken into full consideration for the purpose of finalizing the Draft Amendments.

The Draft Amendments can be viewed via the following link:
Draft Amendments to the Instructions for Book Building Process and Allocation Method in Initial Public Offerings (IPOs)

Prescribed form for providing comments