The Capital Market Authority (CMA) Board announced that regulatory controls and procedures issued pursuant to the Companies Law for listed joint-stock companies and the accompanying guidelines will soon be implemented, in light of the mechanism developed for the listing and trading of priority rights for companies listed on the Saudi Stock Exchange.
The Authority explained that the implementation of these regulations is part of the development of the mechanism for trading priority rights, in line with the Capital Market Authority’s program to achieve “Saudi Vision 2030," which is based on several pillars, including increasing the market’s attractiveness and facilitating investment channels, in order to make the capital market environment more stable, supportive of the national economy, and conducive to investment, The Authority noted that the improved mechanism will be applied to the first offering of priority rights shares following the publication of the regulatory controls and procedures issued in implementation of the amended Companies Law for listed joint-stock companies.

The Authority stated that, in order to reflect the improved mechanism in the regulatory controls and procedures issued in implementation of the Companies Law for listed joint-stock companies, it has amended paragraph (1) of Article 44 of the regulatory controls and procedures to align with the revised mechanism, under which the subscription will take place in a single phase for all holders of preemptive rights, In light of this, paragraph (2) of Article 44 of the regulatory controls and procedures has been deleted.

The amendment included defining the term ”prospectus” as defined in paragraph (c) of Article 3 of the Regulatory Controls and Procedures to include priority rights issued by companies listed on the Parallel Market, and the addition of a definition for the term “Rules for Registration and Listing on the Parallel Market.”