Saudi Arabia tightens IPO rules, requires underwriters to purchase all offered shares
- Saudi Arabia's Capital Market Authority has enacted new rules to improve IPO practices, focusing on tighter book-building requirements and underwriters' responsibilities.
- Under new provisions, underwriters must sign agreements before the book-building process and are obligated to purchase all offered shares, even if investor demand is low.
- The CMA has implemented measures to ensure that subscription orders genuinely reflect the financial capacity of investors, limiting orders to cash and cash equivalents.
