Listing in the Jordanian Capital Market

Listing

Definition:

Registering a security on ASE records so that it becomes tradable. (ASE)

Stock or bond that has been accepted for trading at the Amman Stock Exchange (SDC)

Security listing conditions:

1. The relevant securities are registered with the JSC.

2. The relevant securities are deposited with the Securities Depositary Center (SDC).

3. There are no restrictions on the transfer of ownership of relevant securities.

4. There is an audit Committee at the Issuer, in the sense used in the Securities Law in force.

5. The Issuer has signed the Listing Agreement with the ASE, which determines the rights and obligations of the two parties in relation to listing of securities.

The market is divided in two markets: First Market and Second Market, all shares start trading in the second market

All companies must provide the ASE the following statements information to list there shares in the second market:

1. A report issued by the company's board of directors that includes the following:

• A summary about the company's foundation and its major objectives, as well as its relationship with other companies, be it mother, subsidiary or affiliate (if any).

• A description of the securities issued by the company and those that the company wishes to have listed.

• The board of directors' evaluation, supported with figures and statistics, of the company's performance, the level at which it stands and accomplishments achieved, for comparison against the set plan of action.

• Significant occurrences to the Company or those impacting it between the date of its establishment and the date of submission of the listing request.

• The names of the large owners of securities issued by the Company and the number of securities owned by each of them where such constitutes (5%) or more of the issued securities.

• The company's future plan for the next three years.

• Names of the...