Saudi Arabian Oil Company Aramco has announced the final price of the secondary public offering of the company’s shares as it looks to raise around $11.2bn.
This offering amounts to 1.545 billion shares, representing about 0.64 per cent of the company’s issued shares.
The final offering price for institutional and individual subscribers is set at SR27.25 ($7.27) per share. Individual subscribers will receive at least ten shares each, with the remaining shares allocated proportionally.
Aramco share sale in Saudi Arabia
Aramco disclosed that 1,331,915 individual subscribers have fully subscribed. As a result, 10 per cent of the offering shares will be allocated to individual subscribers, and the remaining 90 per cent will be allocated to institutional subscribers.
The company has granted the Stabilising Manager a greenshoe option to cover short selling operations resulting from any overallotment of shares.
The Stabilising Manager may purchase up to 10 per cent of the offering shares at the final offering price. The Manager has the right to exercise the over-allotment option within 30 calendar days from the date the offering shares started trading.
Aramco said the offering document has been published and is available online, calling on interested parties to read the offering document for complete information on the key event dates for the offering and the subscription and settlement process.
The oil giant has stated that the settlement process and delivery of the offering shares to the subscribing institutions will take place through negotiated trades outside the market.
The settlement process for individual subscribers will be done through the subscription manager and the company’s securities depository centres (Edaa).
The Government of the Kingdom of Saudi Arabia and Saudi Aramco have announced the final offer price for the secondary public offering of ordinary shares of Saudi Aramco
— aramco (@aramco) June 7, 2024
For more information:https://t.co/DpIzElUhfY#aramco pic.twitter.com/MVha8FKyvY
The offering shares will be deposited for individual subscribers in the subscribers’ wallets/brokerage accounts with the financial market institution associated with the receiving entity.
The deposit of the offering shares allocated to subscribing institutions and individual subscribers will be completed before the opening of the Saudi Exchange on Sunday, June 9, 2024.
Subscribers can trade the offering shares when the Saudi Exchange opens on that day. Any surplus of the subscription funds will be refunded to individual subscribers on Tuesday, June 11, 2024.
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