Saudi Arabia's market regulator proposes tighter rules for IPOs after market slowdown
KSA•Saudi Arabia's Capital Market Authority proposed tighter IPO rules to strengthen investor protections and transparency, including requiring institutional investors to show they can fund orders and underwriters to agree to purchase all offered shares. The regulator is seeking public feedback through October 22.
1. Proposed IPO requirements
The Capital Market Authority said the draft rules would shift more IPO execution and funding risk to institutional investors and underwriters. Institutional investors involved in book-building would need to demonstrate liquidity and ability to pay for the orders they back, while underwriting agreements would need to take effect before book-building begins.
2. Disclosure and market context
The draft also calls for mandatory disclosure of forward-looking statements, forecasts and financial performance indicators. Saudi IPO activity has slowed significantly in 2026; separately, equity issuance in the Middle East and Africa totaled $2.1 billion in the first half, down 71% from a year earlier and its lowest level since 2020.
