Tuesday April 15 2025
News Source: Global Exchanges
Focus: Listing Rules
Type: General
Country: Saudi Arabia
On 9th April 2025, the Capital Market Authority (CMA) published a consultation on the Draft to develop the regulatory framework for the offering and listing of different classes of shares.
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 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.
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