Tadawul rejects main market listing for food firm after pump and dump claim

RIYADH: The Saudi stock exchange rejected a request by a food firm seeking a main market listing after unidentified investors were suspected of manipulating share prices.
The bourse said it had rejected an application by Development Works Food Co. to transfer to the main market and had referred a suspected violation to the Public Prosecution.
It relates to alleged practices by a number of investors, involving manipulation and fraud in market trades.
“The suspicion case was regarding them entering purchase orders for the purpose of influencing the share price, and entering purchase orders at the closing auction to achieve a high closing price in the shares of number of listed companies on the Saudi Stock Exchange,” the statement said.
No further details were disclosed.