Tadawul unveils streamlined stock split process to ensure prompt portfolio tweaks

Tadawul trading screen 

The Saudi Exchange (Tadawul) announced today, June 26, updates to its stock split mechanism, thus ensuring that changes in share quantities and nominal values are reflected in investors’ portfolios immediately.

Accordingly, the adjusted shares are tradable as of the first trading session after the stock split decision is passed, according to a statement.

This streamlined stock split process should support investors in making faster, more informed investment decisions, ensuring no misalignment in the stock price and share quantity during its implementation, the statement noted.

Related benefits for investors most notably include:

- Immediate reflection of the adjusted share quantity and price from the first trading session after the stock split decision is approved, being reflected in investors’ portfolios immediately.

- Adjusted stocks will be tradable from the first trading session as of the stock split decision’s approval date.

- More efficient portfolio tracking and management on the day of the stock split for investors.

- Alignment with global best practices.

This enhancement is operational in nature and does not impact the procedure of stock splits or its requirements for listed companies.

Issuers intending to split their stocks can continue to do so without any change to existing mechanisms.

It also noted that this enhancement will take effect as of July 1.