The Saudi market publishes a draft amendment to the rules for the offer of securities

The Board of the Saudi Capital Market Authority issued the decision to publish a draft amendment to the rules on the offering of securities and continuing obligations (the “Project”), for public feedback on it for a period of (30) days calendar ending October 5, 2021.

The Authority added in a note, today, Sunday, that the project aims to regulate the option to increase capital by issuing shares without pre-emption rights pursuant to Article 140 of the Law on companies, also determining the categories of investors from which they can be offered the shares issued, in order to constitute an additional option for joint stock companies listed on the financial market.

The project also includes the options currently available to increase capital through the issue of priority shares, the capitalization issue, the transfer of debts, the acquisition of a company or the purchase of an asset.

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