Saudi Arabia's Capital Market Authority (CMA) is advancing changes to how shares are offered and traded. Chairman Mazen Al-Sudairi described market fairness and investor confidence as priorities in an October 4 interview with Al Arabiya Business. The regulator has separately published draft rules on initial public offerings, algorithmic trading and company earnings calls for public comment.
IPO proposals put more responsibility on deal participants
The CMA's IPO consultation aims to make bids in the book-building process reflect investors' actual liquidity and ability to pay. It also proposes earlier, binding commitments from underwriters and more disclosure by issuers, including measurable financial forecasts. The CMA says the changes are intended to improve pricing and the quality of information available to investors. Comments are open through October 22.
In the interview, Al-Sudairi also said the share of IPO allocations going to individual investors should move toward 30%. That figure describes an ambition he discussed; it is not a new across-the-board allocation rule in the published IPO consultation.
Trading controls and company disclosure are under review
A separate draft on algorithmic trading would introduce safeguards against disruptive order activity. Among its proposals is a limit of 20 algorithmic orders per executed trade in a listed security during a trading day, with an exception for securities classified as very highly liquid. The consultation closes October 24.
The CMA has also proposed that main-market companies hold two earnings calls a year and make the presentation and recording available to investors. Feedback on that draft is open through October 29. Al-Sudairi said the existing 49% foreign-ownership ceiling for listed companies is being reviewed with relevant authorities, but he did not announce a replacement threshold.
These measures remain at different stages of consultation and review. Investors should follow the CMA's final rules and effective dates before treating any proposal as a binding market requirement.