Finance

Aramco announces the final price of the secondary offering on the Saudi stock market

June 7, 2024

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The company confirmed that shares will be allocated to individual subscribers, with each subscriber receiving at least 10 shares, while the surplus subscription funds will be returned to individual subscribers on Tuesday, June 11, 2024.

She declared Aramco Saudi Arabia Today, it announced the final price of the secondary public offering of its ordinary shares at 27.25 riyals per share, following the completion of the process of building the order book.

The secondary public offering includes 1.545 billion shares of…Saudi Aramco shares, which represents about 0.64% of the company’s total issued shares.

The final price of the offering was set at 27.25 Saudi riyals per share, based on the results of the book-building process.

All shares allocated to individual subscribers will be allocated so that each subscriber will receive at least 10 shares, while the remaining shares will be allocated on a proportional basis with an average allocation of 25.13%. The number of individual subscribers reached 1,331,915 subscribers, and all of the shares allocated to them were subscribed. Accordingly, 10% of the offering shares were allocated to individual subscribers, while the remaining 90% were allocated to institutional subscribers.

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While the process of settling and delivering the offering shares to the subscribing institutions will take place through negotiated deals outside the market in accordance with the “negotiated deals” framework in the Saudi financial market.

The settlement process for individual subscribers is through the subscription manager and the Securities Depository Centers Company (Edaa).

The offering shares are deposited in the wallets of individual subscribers in the brokerage accounts of the financial market institution associated with the receiving party, and the shares allocated to subscribing institutions and individual subscribers are deposited before the opening of the Saudi financial market on Sunday, June 9, 2024, which will enable them to start trading shares on that day.

The surplus subscription funds will be returned to individual subscribers on Tuesday, June 11, 2024, equivalent to the difference between the price at which they subscribed (29 Saudi riyals per share) and the final offering price (27.25 Saudi riyals per share), in addition to the surplus amounts of any shares that were not allocated to individual subscribers.

Additional customization options:

The government has granted the stabilization manager a greens hoe option allowing him to purchase up to 10% of the offering shares at the final offering price, to cover short sales arising from any additional allocation of shares. The price stabilization manager has the right to exercise this option in whole or in part during a period of 30 days starting from the date of the start of trading of the offering shares in the Saudi Stock Exchange on Sunday, June 9, 2024, and ending on July 9, 2024. If the option is fully exercised, the ratio of the offering shares will reach approximately 0.7 % of the company’s issued shares.

Financial Advisors and Key Coordinators:

The government appointed M. Klein & Company and Mullis & Company UK LLP acted as independent financial advisors.
Saudi Aramco has appointed Citigroup Saudi Arabia, Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, JP Morgan Saudi Arabia, Merrill Lynch Saudi Arabia, Morgan Stanley Saudi Arabia, and NCB Capital as international coordinators and bookrunners for the offering.
Al Rajhi Capital, Credit Suisse Saudi Arabia, EFG-Hermes Saudi Arabia, Riyad Capital, and Saudi Fransi Capital were also appointed as local bookrunners.
In addition, BNP Paribas, BOCI Asia Limited and China International Capital Hong Kong Securities Limited have been appointed as international bookrunners.