CMA seeks public feedback on mechanism for TASI listing of listed firms’ subsidiaries

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The Capital Market Authority (CMA) invited interested parties, stakeholders, and participants in the capital market to submit their views on the proposed framework regulating the direct listing of subsidiaries of companies already listed on the Main Market.

The consultation period will last for 30 calendar days, ending on March 27, 2026.

According to CMA’s statement, the proposed draft aims to enable subsidiaries of TASI-listed companies to directly list their shares without going through an initial public offering (IPO). This will shorten timelines, simplify procedures, and reduce costs related to listing in the Saudi Exchange. It will also create more investment opportunities, contribute to deepening the market, and enhance diversification of investment products, while maintaining high levels of transparency and investor protection.

The proposals include allowing the issuer and its financial advisor—before obtaining CMA approval for the share registration application—to present information about the issuer and its financial statements to a group of potential investors to gauge their investment interest in the direct listing. They may also share information with selected licensed capital market institutions to prepare financial research and reports, provided such reports are not published before CMA approval is granted.

Furthermore, the proposed framework emphasizes the importance of proper disclosure by regulating the share registration requirements for the Main Market. This includes submitting a registration document to CMA outlining required information, such as the mechanism for determining the indicative share price and the associated risks, said the regulator.

Under the proposal, the Rules on the Offering of Securities and Continuing Obligations, as well as CMA’s glossary and regulatory terminology, will be amended to allow this type of listing.

The Draft Amendments to 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

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