Saudi Aramco, the world’s largest integrated energy and chemicals firm, aims to raise up to $13.1 billion in a secondary public offering next month, by selling a 0.64%, or 1.545 billion shares.

 

The offering will commence on June 2. The price range is expected to be between SR26.70 and SR29 ($7.12-$7.73) per share, raising between $11 billion and $12 billion.

 

The value of the offering may increase to $13.1 billion at the upper limit if the ‘greenshoe option’ is exercised. This allows the sale of 1.7 billion shares, or a 0.7% stake, enabling bankers to use these shares to stabilise the offering price.

 

Biggest IPO

Aramco raised $25.6 billion through its initial public offering (IPO) in December 2019, which was the biggest IPO in history.

 

The book-building period for institutional investors starts on June 2 and will end on June 6. Aramco plans to conduct several meetings with institutional investors for five days, beginning June 2.

 

Nearly 154.5 million shares, representing 10% of the offering, will be allocated to retail investors.

 

The government will receive all of the net proceeds of the offering but will reimburse Aramco for all fees, costs and expenses it incurs in connection with the offering.

 

Accordingly, the company will not receive any of the proceeds of the offering and the offering will not result in any dilution of the shares of the other shareholders of the company.

 

Advisors and offering syndicate

M Klein and Company and Moelis & Company UK LLP are acting as Independent Financial Advisors (the IFAs) for the offering.

 

Citigroup Saudi Arabia, Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, JP Morgan Saudi Arabia Company, Merrill Lynch Kingdom of Saudi Arabia, Morgan Stanley Saudi Arabia and SNB Capital Company are acting as joint global coordinators and joint bookrunners (the Joint Global Coordinators) for the Offering.

 

Al Rajhi Capital, Riyad Capital and Saudi Fransi Capital are acting as domestic joint bookrunners for the Offering (together with the Joint Global Coordinators, the Bookrunners).

 

SNB Capital Company is acting as the Lead Manager of the Offering. Alinma Bank, Alrajhi Banking and Investment Corporation, Arab National Bank, Banque Saudi Fransi, Riyad Bank, Saudi Awwal Bank and Saudi National Bank are acting as the receiving entities for the Offering. Merrill Lynch Kingdom of Saudi Arabia is acting as the stabilising manager (the Stabilising Manager) for the offering.--TradeArabia News Service