Saudi Arabia’s Capital Markets Authority (CMA) has opened a public consultation on draft amendments that would allow subsidiaries of companies listed on the Main Market, subject to shareholders’ approval, to list their shares directly on the Main Market without going through an initial public offering process. The proposal would amend the Rules on the Offer of Securities and Continuing Obligations and the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority to accommodate this listing route. It also sets out disclosure and share registration requirements, including submission of a registration document and specified information on how a guiding share price would be determined and the risks associated with that mechanism. Ahead of CMA approval of the share registration application, the issuer and its financial advisor would be permitted to share issuer information and financial statements with a group of potential investors to gauge interest, and to provide such information to a specified group of advising-licensed Capital Market Institutions for the purpose of preparing research and financial reports, provided the research and reports are not published before CMA approval. Comments are invited for 30 calendar days, ending on 27 March 2026, and the CMA indicated feedback will be taken into consideration when finalising the amendments.

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