Saudi Arabian Oil Company Aramco has revealed the final price of its secondary public offering of shares, aiming to raise approximately $11.2B.
This offering comprises 1.545B shares, equivalent to about 0.64% of the company’s issued shares.
The ultimate offering price for both institutional and individual subscribers has been fixed at SR 27.25 ($7.27) per share. Individual subscribers will receive a minimum of ten shares each, with the remaining shares distributed proportionally.
Aramco’s share sale in Saudi Arabia
Aramco has disclosed that 1,331,915 individual subscribers have fully subscribed. Consequently, 10% of the offering shares will be assigned to individual subscribers, while the remaining 90% will go to institutional subscribers.
The company has given the Stabilising Manager a greenshoe option to manage short selling operations resulting from any excess allotment of shares.
Moreover, the Stabilising Manager may purchase up to 10% of the offering shares at the final offering price. They have the right to exercise the over-allotment option within 30 calendar days from the commencement of trading of the offering shares.
Aramco has announced the publication of the offering document, available online, urging interested parties to consult it for comprehensive information on the key event dates for the offering and the subscription and settlement process.
The oil giant has affirmed that the settlement process and delivery of the offering shares to subscribing institutions will occur through negotiated trades outside the market.
Additionally, the settlement process for individual subscribers will be conducted through the subscription manager and the company’s securities depository centres (Edaa).
The offering shares will be deposited into the subscribers’ wallets/brokerage accounts with the financial market institution associated with the receiving entity.
Notably, subscribers can commence trading the offering shares when the Saudi Exchange opens on that day. Any excess of the subscription funds will be reimbursed to individual subscribers on Tuesday, June 11, 2024.
