What the new Saudi listing rules means for issuers’ costs

Author: Gemma Varriale | Published: 7 Feb 2012
The Saudi Capital Market Authority’s (CMA) recently published listing rules have raised concerns around the cost implications of some of the changes.

The new rules codify requirements to submit financial and due diligence reports and pro forma letters to the CMA in support of an application for listing.

"The knock-on effect of this requirement is that it is likely to cost a company more in advisors’ fees to ready itself for listing," said Omar Rashid, a Clifford Chance counsel on secondment to Al-Jadaan & Partners Law Firm in Riyadh.

It is also unclear whether submitting financial and due diligence reports and pro forma letters will effectively increase the potential...