The CMA set Oct. 22, 2026, as the deadline for feedback on the proposed IPO rules
Some banks have raised concerns over part of the Capital Market Authority’s (CMA) proposed amendments to initial public offering (IPO) rules, particularly underwriters’ obligations regarding unsubscribed shares, Bloomberg reported, citing people familiar with the matter. 
Banks raised concerns with the CMA over proposals that could require underwriters to purchase shares not subscribed for by investors.
According to the sources, these requirements could leave banks having to take up the entire offering if it is not fully subscribed, while some institutions may struggle to comply due to restrictions on their ability to own stakes in companies.
Bloomberg said several banks, including international lenders active in Saudi Arabia’s IPO market, submitted feedback to the CMA on the proposals.
Bankers broadly support efforts to improve the IPO process but are concerned that the proposed underwriting requirements could reduce the number of institutions able to participate in offerings, the report added.
According to data available with Argaam, the CMA on Sept. 22 published for public consultation a draft framework aimed at improving IPO practices. The proposed rules seek to strengthen the underwriter’s role and responsibility in the offering process from the book-building stage by requiring the underwriting agreement to be signed and become effective before book-building begins, with the underwriter’s commitment to purchase all offered shares taking effect at the start of the book-building process.
The proposed provisions also require verification that participation orders submitted during book-building reflect the actual value of liquidity available to investors, while limiting financial solvency verification to cash or cash equivalents.
Issuers would also be required to disclose forward-looking information, including financial performance indicators covering at least one year.
The CMA set Oct. 22, 2026, as the deadline for submitting feedback on the draft rules. If approved, the proposed regulatory provisions will take effect on Nov. 2, 2026.
The CMA set Oct. 22, 2026, as the deadline for feedback on the proposed IPO rules
Some banks have raised concerns over part of the Capital Market Authority’s (CMA) proposed amendments to initial public offering (IPO) rules, particularly underwriters’ obligations regarding unsubscribed shares, Bloomberg reported, citing people familiar with the matter.
Banks raised concerns with the CMA over proposals that could require underwriters to purchase shares not subscribed for by investors.
According to the sources, these requirements could leave banks having to take up the entire offering if it is not fully subscribed, while some institutions may struggle to comply due to restrictions on their ability to own stakes in companies.
Bloomberg said several banks, including international lenders active in Saudi Arabia’s IPO market, submitted feedback to the CMA on the proposals.
Bankers broadly support efforts to improve the IPO process but are concerned that the proposed underwriting requirements could reduce the number of institutions able to participate in offerings, the report added.
According to data available with Argaam, the CMA on Sept. 22 published for public consultation a draft framework aimed at improving IPO practices. The proposed rules seek to strengthen the underwriter’s role and responsibility in the offering process from the book-building stage by requiring the underwriting agreement to be signed and become effective before book-building begins, with the underwriter’s commitment to purchase all offered shares taking effect at the start of the book-building process.
The proposed provisions also require verification that participation orders submitted during book-building reflect the actual value of liquidity available to investors, while limiting financial solvency verification to cash or cash equivalents.
Issuers would also be required to disclose forward-looking information, including financial performance indicators covering at least one year.
The CMA set Oct. 22, 2026, as the deadline for submitting feedback on the draft rules. If approved, the proposed regulatory provisions will take effect on Nov. 2, 2026.
