Saudi CMA proposes new rules to enhance IPO book-building practices

Riyadh - Mubasher: The Capital Market Authority (CMA) has invited public feedback on a draft project aimed at improving initial public offering (IPO) practices, with a 30-day consultation period ending on 22 October 2026.

The proposed regulations seek to enhance the reliability of the book-building process by ensuring that participation requests are backed by actual liquidity and a genuine capacity to pay.

Under the new framework, financial advisors must verify that investor bids reflect cash or near-cash availability.

The project also mandates that underwriters sign and activate underwriting agreements before the book-building process begins.

If an underwriter’s purchase of unsubscribed shares results in a breach of listing requirements, the issuer’s shares will not be listed, and the underwriter must acquire the entire offering.

Furthermore, the proposal requires issuers to disclose financial performance indicators and future forecasts for a minimum period of one year.

This measure is intended to support price discovery and provide investors with measurable data. The CMA confirmed that the final regulatory provisions are scheduled to take effect on 2 November 2026, following the review of public submissions.

Source: Mubasher Source: {{details.article.source}}