Saudi Arabia’s Capital Market Authority has launched a consultation on draft provisions to strengthen initial public offering practices. The proposals would link book building orders more closely to participants’ available liquidity and ability to pay, make payment commitments binding within the prospectus timetable and improve the information used for price discovery. Financial advisers and other Capital Market Institutions receiving orders would have to verify participants’ financial capacity using cash or cash equivalents. Underwriting agreements would need to take effect before book building begins, with underwriters becoming obligated at that point to purchase all offered shares. Issuers would also have to disclose forward looking statements, forecasts and financial performance indicators covering at least one year, subject to professional due diligence by the financial adviser. If approved, the provisions will take effect on Nov. 2, 2026.
2026-09-22Saudi Arabia Capital Markets Authority
Saudi Arabia's Capital Market Authority launches consultation on tighter IPO book building and underwriting rules
Saudi Arabia’s Capital Market Authority is consulting on tighter IPO rules that would require book building orders to reflect participants’ actual liquidity and become binding for payment. The proposals would strengthen underwriting obligations and require issuers to provide at least one year of forward looking financial information. If approved, the provisions will take effect on Nov. 2, 2026.