Tadawul Announces Updates on its Index Methodology
Sunday, December 01, 2019 at 5:00 PM
Sun Dec 1, 2019 17:00
The Saudi Stock Exchange (Tadawul) announces that it has updated its indices methodology for the development and management of Tadawul equity indices. These updates include revisions in free float shares calculation methodology, fast inclusion to Tadawul main market index (TASI), capped indices calculation and maintenance,
Above mentioned Changes are detailed as below:
1. Free Float Shares calculation methodology has been revised with regards to Non Free Float Shares owned by a Government Entity where ownership is 5% and more, restricted shares, companies share buy-back, controlling ownerships, and shares held by members of the board of directors.
2. Applying a new rule for “Fast Entry” whereby shares of significantly large IPOs are included in TASI at the close of the 5th trading day.
3. Applying index capping for TASI with a threshold of 15%.
Except for the Fast Entry rule that is effective immediately, changes related to free float shares and index capping for TASI will be effective by the end of Q4 2019, in alignment with the quarterly indices maintenance.
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