16 Hrs
Source:
الاقتصادية
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Saudi Stock Exchange Tracks IPOs and Order Book Reliability
The Saudi Capital Market Authority has focused on improving practices for building the order book in initial public offerings (IPOs) through a new regulatory project aimed at enhancing transparency of orders and their financial appropriateness, as well as reducing reliance on attractive figures that do not represent genuine demand. The amendments include a more precise definition of financial adequacy, limited to cash or quasi-cash funds that can be converted into the subscription value within the specified timeframe. This may lead to lower coverage ratios but better reflect demand backed by real funds. Additionally, the regulation stipulates the requirement for final orders after the order book building period to be binding for payment. It also sets a timing for the underwriting commitment before the start of the offering, with the responsibility to purchase all shares if the company fails to meet listing standards. Moreover, companies will be required to provide clear and measurable future financial forecasts supported by an independent professional opinion, to enhance the transparency of information provided to investors.
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