Saudi Arabia's Capital Market Authority (CMA) has opened a public consultation on a draft regulatory framework to develop the rules for offering and listing different types and classes of shares, including related disclosure and capital increase requirements. The consultation runs for 30 calendar days until 9 May 2025. The draft would enhance disclosure requirements for various share types and classes, including redeemable shares, and set disclosures for converting shares from one type or class to another. It also proposes changes to the framework for capital increases by listed companies by allowing capital to be raised through registering and offering a new type or class of shares that has not previously been listed, and by regulating increases in issued capital within the limits of authorised capital. Separately, the CMA proposes to require a person to notify the Exchange when they own or have an interest in 5% or more of the issuer’s voting rights, replacing the current trigger based on 5% or more of the issuer’s total shares. Comments received through the CMA’s consultation channels will be considered in finalising and approving the proposed amendments.
Saudi Arabia Capital Markets Authority 2025-04-09
Saudi Arabia's Capital Market Authority launches consultation on draft rules for offering and listing multiple classes of shares
Saudi Arabia's Capital Market Authority has opened a public consultation on a draft framework to improve rules for offering and listing share types, including disclosure and capital increase requirements. The draft enhances disclosure for redeemable shares, conversion disclosures, and capital increase frameworks, allowing new share types to be registered. It also proposes a notification requirement for owning 5% or more of an issuer’s voting rights, replacing the current trigger based on total shares.