Saudi market regulator approves Saudi Aramco's IPO

Saudi Arabia’s Capital Market Authority (CMA), the Kingdom’s market regulator, said on Sunday that it issued a resolution approving Saudi Aramco’s initial market offering (IPO). 

The company’s prospectus will be published prior to the start of the subscription period, CMA said in a statement.

The prospectus includes all relevant information that investors need to know before making a decision, including the company's financial statements, activities and management.

“A subscription decision without reading the prospectus carefully or fully reviewing its content may involve high risk,” the statement noted.

CMA called on investors to carefully read the prospectus, which includes detailed information on Saudi Aramco, the offering and risk factors.

“The prospectus will provide potential investors the ability to evaluate the viability of investing in the offering, taking into consideration the associated risks. If it proves difficult to understand, it is recommended to consult with an authorized financial advisor prior to making any investment decision,” it further added.

The CMA’s approval on the application should never be considered as a recommendation to subscribe in the offering of any specific company, the statement stressed.

The approval on the application merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.

The CMA’s approval on the application shall be valid for six months from the board resolution date.

The approval shall be deemed cancelled if the offering and listing of the company's shares are not completed within this period.