CMA seeks public opinion on amendments to book-building instructions, IPO allocation method

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The Capital Market Authority's (CMA) board issued a resolution to publish draft amendments to the instructions for the book-building process and allocation method in initial public offerings (IPOs) for public consultation for 30 days ending April 14.

The main elements of the draft amendments are developing the provisions regulating the participating parties in the book-building process, including allowing the financial advisor to determine the parties entitled to participate in the book-building process from the parties stipulated in the instructions provided that public funds are among them.

It also includes determining the responsibilities of the financial advisor in relation to verifying the financial solvency of the participating entities, and their ability to pay the value of the shares requested in the bidding participation application when allocated.

The amendments include developing the provisions regulating the shares allocation for participating entities after completing the book building.

The CMA will receive opinions and comments through the unified electronic platform for consulting the public and government entities (Public Consultation Platform) or email (Laws.Regulations@cma.org.sa).

All comments will be taken into consideration to finalize the draft amendments, the authority said.

Click to read the draft amendments: