Regulatory Alerts2016-07-20
Instructions for Book Building Process and Allocation Method in Initial Public Offerings
The Capital Market Authority of Saudi Arabia issued these Instructions to regulate the book building process and allocation methods for Initial Public Offerings. The rules define eligible participating entities, establish bid limits and conflict of interest prohibitions, and mandate transparent price range announcements alongside flexible adjustments. Financial advisors determine subscription prices based on supply and demand within exchange tick size limits, while final share allocations are distributed to institutional funds and retail subscribers as specified in the prospectus.
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