Document background
The Cornerstone Investment Agreement is a crucial document used in Saudi Arabian capital markets transactions, particularly in connection with initial public offerings (IPOs) or significant public share offerings. It serves to secure substantial pre-IPO commitments from strategic or institutional investors, providing stability and confidence to the offering. The agreement must comply with Saudi Arabian laws and regulations, particularly those issued by the Capital Market Authority (CMA), and may need to address Shariah compliance requirements. It typically includes detailed provisions on investment amounts, pricing mechanisms, lock-up periods, regulatory approvals, and closing conditions. This document is especially relevant in the context of Saudi Arabia's Vision 2030 initiative, which encourages private sector participation and capital market development.
