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Wed 6 Nov 2019 12:22 PM

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Saudi government to face restrictions on selling Aramco shares after IPO - source

Government is looking to list 2 percent of the company on the Saudi bourse, instead of the entire share capital, according to reports

Saudi government to face restrictions on selling Aramco shares after IPO - source

Saudi Aramco’s roadshows will begin on November 18, with pricing scheduled for December 5 and shares expected to start trading on December 11

The Saudi government will face a year-long restriction on selling additional shares of Saudi Aramco following its IPO, according to media reports.

Citing three sources familiar with the matter, Reuters reported that the government is looking to list 2 percent of the company on the Saudi bourse, instead of the entire share capital.

In most cases, public companies list their entire share capital on the bourse, with a portion of that being a free float.

Aramco announced a domestic IPO on Sunday. In a statement, the firm said that Aramco and the selling shareholder will be subject to restrictions on the sale, disposition or issuance of additional shares.

No lockup period was provided.

The company’s roadshows will begin on November 18, with pricing scheduled for December 5 and shares expected to start trading on December 11, the Reuters sources said.