Saudi Arabia’s Capital Market Authority (CMA) has approved the price stabilization mechanism draft for initial public offerings (IPOs), it said in a statement on Wednesday.
The new mechanism aims to regulate the price stabilization activities for the shares of newly listed companies on the Saudi Stock Exchange after the IPO.
It will also determine the requirements to be met by the price stabilization manager, its obligations when conducting the price stabilization mechanism, and the exemptions related to the actions taken during the price stabilization period.
The instructions shall, however, not prejudice the provisions of the Capital Market Law and its implementing regulations, the CMA added.
The draft, put up for public consultation in June, was finalized after taking into consideration the views of public, specialists and interested parties.
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