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Saudi Arabia’s stock exchange has rolled out a new capital management system (CMS) to enhance the initial public offering (IPO) process within the kingdom’s capital market.
The new platform is meant to improve transparency in public offerings, provide investors with a wider access to investment opportunities, as well as keep the subscription experience seamless and less time-consuming.
The initiative is in line with the strategy to further develop the Saudi capital market and attract more investors.
The system has been pilot tested in the Saudi Stock Exchange (Tadawul) Main Market. The Saudi Exchange Company said on Tuesday that the system will now be fully launched to receive subscriptions for a wide range of securities.
As for issuers, the new platform will help them save time in accessing the market. They will be able to list their financial securities more efficiently, as well as reach more investors.
The new CMS will also benefit financial institutions and subscription managers, with administrative burdens now reduced and the subscription workflow streamlined. They will also be able to manage their IPOs with “greater flexibility”.
(Writing by Cleofe Maceda; editing by Seban Scaria)
