Saudi Aramco, the world’s largest integrated energy and chemicals company, has announced SR27.25 ($7.27) as the final offer price for both institutional and retail investors for the secondary public offering of ordinary shares of the firm.

 

The offering comprises a secondary public offering of 1.545 billion shares of the company, representing approximately 0.64% of the company’s issued shares and aims to raise a total of about $12 billion from the offer.

 

All shares offered to retail investors will be allocated based on a minimum allocation of 10 shares for each subscriber and with the remaining shares being allocated on a pro-rata basis with an average allocation factor of about 25.13%, the company said after the bookbuilding process.

 

Fully subscribed

The retail offering was fully subscribed and received a total of 1,331,915 subscribers. Accordingly, 10% of the offer shares (excluding shares issued pursuant to the over-allotment option) will be allocated to retail investors and the remaining 90% of the offer shares will be allocated to institutional investors.

 

For the purposes of allowing the stabilising manager to cover short positions resulting from any over-allotments, the Government has granted the stabilising manager an option (the over-allotment option) or ‘greenshoe’, pursuant to which the stabilising manager may purchase from the Government up to 10% of the number of offer shares, at the final offer price. 

 

The over-allotment option will be exercisable in whole or in part upon notice by the stabilising manager, at any time on or before 30 calendar days after the commencement of trading of the Offer Shares on the Saudi Exchange, which is expected to be Sunday, June 9 2024, and will therefore cease to be exercisable on Tuesday, July 9, 2024. Assuming the exercise of the over-allotment option in full, the offering will comprise approximately 0.70% of the company’s issued shares.--TradeArabia News Service