Saudi Aramco, the world’s biggest oil producer, has issued on Nov. 9 prospectus for its initial public offering (IPO) on the Saudi Stock Exchange (Tadawul) after obtaining the approval of the Capital Market Authority (CMA).
The IPO and book-building process will begin on Nov. 17 and will run through Dec. 4.
The retail offering will run from Nov. 17- Nov. 28, 2019.
A maximum of 0.5 percent of the offered shares will be allocated to retail investors, while no maximum limit was set for institutions. The minimum subscription limit for retail investors stands at 10 shares, with no maximum limit.
The IPO targets two tranches:
Institutional investors comprises all categories of investors entitled to participate in the book-building process.
Retail investors: comprises Saudi nationals, including any Saudi female divorcee or widow with minor children from a non-Saudi father, as she can subscribe for her own benefit or in the names of her minor children, on the condition that she proves that she is a divorcee or widow and the mother of her minor children; and any non-Saudi natural person who is resident in the Kingdom and any GCC national, in each case who has a bank account with one of the receiving entities;
The Saudi government and Saudi Aramco will set the number of shares allocated for institutional investors through the book-building process in coordination with the financial advisors/global coordinators.
The final offering price will be determined by the seller, Saudi Aramco, the financial advisors/global coordinators by the end of the book-building process.
Share allotment for all categories of investors will be based on the final offering price.
Following the book-building process, the final offering price will be officially announced in the local, global media and on the company's website.
The major oil producer and the financial advisors/global coordinators will announce the subscription coverage ratio by institutional investors at the end of the book-building process.
Saudi Aramco has SAR 60 billion in capital, divided into 200 billion shares.
The IPO will not impact the company's capital or issued shares, Aramco added.
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Company Profile |
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Company |
Saudi Aramco |
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Stock market |
Saudi Stock Exchange Tadawul (TASI) |
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Company’s core activities |
Energy field |
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Current capital |
SAR 60 bln |
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Total number of shares |
200 bln |
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Par value |
None |
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