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Saudi Capital Market Authority Offerings Reach $8.2 Bn

Saudi Capital Market Authority Offerings Reach $8.2 Bn

Monday, 25 April, 2022 - 08:15
The Saudi main and parallel stock markets are public offerings attractive (Asharq Al-Awsat)

The Saudi Capital Market Authority (CMA) revealed that the volume of initial offerings requests in the main and parallel financial market tripled last year to reach $8.2 billion.

The Authority issued its annual report for the fiscal year 2021, which includes the most critical developments and procedures in the financial market.

Last year witnessed a significant jump of 385.8 percent in the number of requests for public offering and registration of shares in the main and parallel markets approved by the Authority to reach 34 bids.

The report pointed out that the shares of nine companies were offered an initial public offering (IPO) in the main market Tadawul, and three companies were offered an IPO in the parallel market Nomu.

The shares of eight companies were registered for a direct listing in Nomu, and one company was promoted to the Tadawul market.

According to the report, the volumes of securities offerings in Tadawul and Nomu reach about $8.2 billion, while assets under management increased 24 percent to reach $202 billion.

The Authority attempts to develop and grow the Sukuk and Debt Instruments market.

The market witnessed several positive developments, such as the Saudi Stock Exchange joining the FTSE Emerging Markets of Government Bond Index- EMGB, and the iBoxx global government bond index.

The size of the Sukuk and Debt Instruments market increased as a percentage of the output gross domestic product, reaching 29 percent at the end of last year.

The volume of funds from Sukuk and debt instruments offerings amounted to $9.9 billion, compared to $8.2 billion in the previous year.

As part of the Authority's strategic objectives to regulate and develop the capital market, it issued its Resolution to approve the Regulation on the Reporting of Violations of the Capital Market Law.

The Regulation aims to regulate reporting of violations of the Capital Market Law and its implementing regulations or violations of the rules of the Exchange, the Depository Center, or the Clearing Center.

The report stated that the Authority completed the necessary procedures for 160 cases and implemented 70 decisions issued by its council and the committees to settle securities disputes.

It also issued 17 decisions to license new financial market institutions while continuing its support for financial technology projects in the Kingdom.

The Authority issued 19 financial and technical permits.

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