30% of Tadawul Shares to Go Public Request, Gets the Green Light

The Capital Market Authority (CMA) approved Saudi Tadawul Group Holding Company’s request to offer as much as 36,000,000 shares for public subscription, representing 30% of the company’s shares, and the prospectus shall be published, before the subscription begins.

Such a prospectus shall comprise all information and data, almost, in detail, that an investor needs to make an informed investment choice, such as the company’s financial statements and sufficient information about its operations and management.

The Choice to subscribe without first reading and understanding the prospectus, carries a lot of risk. As a result, the investor should carefully read the prospectus, which contains thorough information about the firm, the offering, and risk considerations, in order to determine the viability of subscription, in the offering given, the risks involved.

CMA’s approval of the application shall not be interpreted as an endorsement of the feasibility of investing in the offering or in the shares of the concerned company, because the CMA’s decision to approve the application, only indicates that the regulatory requirements of the Capital Market Law and its implementing regulations, have been, formally, met.

Approval of the application shall be valid for 6-month, as of the date of the CMA’s decision, however, if the offering and listing of the company’s shares not completed, during the aforementioned span of time, the approval shall be regarded, canceled (null and void).