62 IPOs in Saudi Arabia
Riyadh, August 27, 2007
Shares worth $7.46 billion were offered in 62 initial public offerings (IPOs) made in Saudi Arabia last year.
Saudi Arabia's Capital Market Authority (CMA) approved 40 IPOs drawing $3.2 billion from the middle of 2004 till the end of 2005.
CMA chairman Dr Abdul Rahman Al Tuwaijeri was quoted as saying by Khaleej Times that the number of IPOs recorded last year was the largest since its inception in 2004.
During the period, the authority allowed expatriates to invest in the kingdom's stock market and reduced the nominal value of joint stock company shares to $2.66 per share and fixed maximum commission at $3.20 for transaction orders up to $2,666.66.
During the last two years, the CMA settled 70 per cent of 2,295 complaints it had received from investors.
The report discussed the new rules and regulations issued by the authority including the market etiquette, principles to be followed by licensed agents and the company control law as well as the major decisions adopted by the authority to strengthen the market.
The CMA formulated new regulations in order to allocate the largest number of offered shares to individual subscribers and reduce the period for returning excess money to investors after final allocation of shares.
"These measures contributed to increasing the number of investors in the Saudi stock market," Al Tuwaijeri said.