Saudi Regulator Faces Calls to Review IPO Localization Push

Saudi Arabia’s markets regulator is being urged to rethink its push to give local retail investors a larger share of initial public offerings, amid concerns the effort risks further weakening listing performance.

Several banks have been pressing the Capital Market Authority to reconsider guidance encouraging issuers to allocate as much as 30% of shares in IPOs to retail investors, saying it pushes too much stock toward individuals during a period of weak demand, according to people familiar with the matter.