Americana lists on Tadawul with first open fluctuation since 2013

Logo of Americana Restaurants International

Americana Restaurants International’s shares list and start trading today, Dec. 12, on the Saudi Exchange (Tadawul), marking the first listing since 2013 with an open fluctuation rate.

Tadawul decided not to apply the daily price fluctuation limit on the company’s shares for the first three days of listing, while applying the +/- 10% static price fluctuation limits.

From the fourth trading day onwards, the daily price fluctuation limits of -/+ 10% will be applied, and the static price fluctuation limits will no longer apply, according to the trading and membership procedures. 

Tadawul did not clarify whether the decision to open the fluctuation rate for Americana's share was due to the dual IPO on Tadawul and Abu Dhabi Securities Exchange (ADX). The Abu Dhabi market maintains open fluctuation rate for the first three trading sessions.

ADX’s operational rules stipulate that price limits are not applicable to a security at its first trading session in the market, so that the price shall be floated for three trading sessions starting from the listing date.

Also, the share closing price at the first session shall be the reference price to calculate the change limits on the opening of the second session.

Operational rules determined that the market management may decide to float the price for a shorter period than above mentioned, or to not to float the security price if such decision will ensure the security’s price stability or investor interest.

As of May 2013, Saudi Arabia’s Capital Market Authority (CMA) decided to determine the fluctuation rate during the first trading day of a listed company at 10% compared to the IPO price, according to data available with Argaam.

In November 2020, Tadawul expanded the daily price fluctuation limits to +/- 30% instead of +/- 10% in the first three sessions for new listings.

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