Saudi Arabia Proposes Rules to Boost Secondary Share Sales
- Secondary offerings to help increase weight in market indexes
- Follow-on offerings have not caught on in the Persian Gulf
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Saudi Arabia’s market regulator has proposed a framework for secondary offerings to help boost liquidity and increase the weight of the kingdom in emerging market indexes.
The Capital Market Authority said it’s calling for a 30-day public consultation on a framework to regulate secondary offerings. Rules proposed on Wednesday would allow shareholders to offload stakes, which the regulator said would contribute to more efficient pricing and make more shares available for trading.