Dhahran, The Saudi Arabian Oil Company (Aramco) announced on Thursday that it will launch the secondary public offering of ordinary shares on Sunday, June 2, 2024. The offering represents 1.545 billion shares, about 0.64% of the company’s issued shares. The price range for the offering shares is expected to be between SAR 26.7 and SAR 29 per share.
The government has granted the stabilizing manager an option (the over-allotment option) or ‘greenshoe option’ to cover short positions resulting from any over-allotments. The stabilizing manager may purchase up to 10% of the offer shares from the government at the final offer price.
The over-allotment option will be exercisable within 30 calendar days after the commencement of trading of the offer shares on the Saudi Exchange (Tadawul), expected to be Sunday, June 9, 2024. The offering will comprise approximately 0.7% of the company’s issued shares, assuming full exercise of the over-allotment option.
The government and the company will be restricted from disp
osing of the company’s shares for six months following the closing date of the offering, expected to be June 11. The offering will be made to institutional investors in Saudi Arabia, institutional investors outside the Kingdom who are qualified per the rules for foreign investment in securities to invest in listed securities, and eligible retail investors in the Kingdom and other GCC countries.
As amended, the offering will also comply with Regulation S under the US Securities Act 1933. The company plans to hold meetings with participating parties on June 2-6.
Provided that there is sufficient demand, 154.5 million offering shares, representing 10% of the total number of offering shares, will be allocated to individual subscribers. If the terms and conditions of the offering change or update, an announcement will be issued, stressing that the number of offering shares allocated to individual subscribers will not change.
The offering document will be published on the website (www.aramco.com/share-offering).
M. Klein and Company and Moelis and Company UK LLP have been appointed independent financial advisors to the offering to ensure the highest level of expertise and professionalism.
Citigroup Saudi Arabia, Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, J.P. Morgan Saudi Arabia Company, Merrill Lynch Saudi Arabia, Merrill Lynch Kingdom of Saudi Arabia, Morgan Stanley Saudi Arabia, and SNB Capital Company have been appointed as coordinators and book-runners for the offering.
Al-Rajhi Capital, Riyad Capital, and Capital Saudi Fransi were appointed [local] book-runners for the offering. Collectively, with the international coordinators, they are referred to as ‘book-runners’).
National Bank Capital Company (SNB) was appointed as the lead manager for the offering. The First Saudi Bank (SAB), Alinma Bank, Arab National Bank (ANB), Saudi National Bank, and Al-Rajhi Bank were also appointed. Riyad Bank and Banque Saudi Fransi are the recipients of the offering. Merrill Lynch Kingdom of Saudi Arabia has also been app
ointed the ‘Price Stabilization Manager’ for the offering.
The start of the offering was announced to take place before the opening of the Saudi financial market, at 9:00 am on Sunday 11/25/1445 H, corresponding to 06/02/2024, whereas the period for building the order book for subscribing institutions begins at 9:00 am (Riyadh time) on Sunday, 11/25/1445 H corresponding to 06/02/2024 and ending at 5:00 pm (Riyadh time) on Thursday 11/29/1445 H corresponding to 06/06/2024.
Meanwhile, the subscription period for individual subscribers begins at 9:00 am (Riyadh time) on Monday 11/26/1445 H corresponding to 06/03/2024 and ends at 5:00 pm (Riyadh time) on Wednesday 11/28/1445 H corresponding to 06/05/2024.
The final offering price and allocation of the offering shares to subscribing institutions and individuals will be announced on Friday, 12/01/1445 H, corresponding to 06/07/2024.
The company explained that the deadline for completing the implementation of Negotiated Trades (NT) is before 9:00 am on Sunday, 1
2/03/1445 H, corresponding to 06/09/2024, and the deadline for depositing shares in the investment portfolios of individual subscribers is before 9:00 am on Sunday, 12/03/1445 H, corresponding to 06/09/2024.
It is expected that the subscribing investors will be able to start trading the offering shares in the Saudi financial market after implementing the NT for the subscribing institutions and depositing the shares of the individual subscribers in their investment portfolios on Sunday 12/03/1445 H corresponding to 06/09/2024. The last date for returning the surplus subscription amounts or, as applicable, the entire subscription amounts, if any, to individual subscribers is Tuesday 12/05/1445 H, corresponding to 06/11/2024.
The cash settlement and refund of the surplus subscription amounts, or as applicable, the full subscription amounts, if any, will be announced on Tuesday 12/05/1445 H, corresponding to 06/11/2024. The completion of the offering and the total final offering value will be announced on Tuesd
ay 12/05/ 1445 H, corresponding to 06/11/2024, and the price stability period from Sunday 03/12/1445 H, corresponding to 06/09/2024 until Tuesday 01/03/1446 H, corresponding to 07/09/2024.
Source: Saudi Press Agency
