SAUDI ARABIA: CMA Adopts Amended Rules on Securities Listing

Monday October 7 2019

On 6^th October 2019, the Capital Market Authority (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.

Furthermore, 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.

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 

Click on the above link for further information.