Saudi Aramco appoints Goldman Sachs as Stabilizing Manager for IPO, to buy 15% of total offered shares

State oil giant Saudi Aramco has appointed Goldman Sachs as the Stabilizing Manager for its initial public offering (IPO), according to its prospectus issued early Sunday.

The company has allowed Goldman Sachs to purchase an additional number of shares equal to up to 15 percent of the total number of shares sold in the offering (Over-allotment Shares) at the final offer price.

The prospectus said that the Stabilizing Manager may affect transactions to stabilize the market price of the shares to the extent permitted by the Stabilization Instructions. Such transactions may be affected on the Exchange and undertaken at any time during the Stabilizing Period.

“However, the manager is under no obligation to undertake any stabilizing transactions and such stabilization, if commenced, may be discontinued at any time without prior notice,” the prospectus said.

The Stabilizing Manager will disclose any allocation of over-allotments and price stabilization processes undertaken in connection with the Offering to the extent required by the Stabilization Instructions.

In order to allow the Stabilizing Manager to cover short positions resulting from any over-allotments, the selling shareholder will grant the manager the Over-allotment Option pursuant to which the manager may purchase the Over-allotment Shares at the Final Offer Price.

The Over-allotment Option will be exercisable in whole or in part upon notice by the Stabilizing Manager at its discretion at any time during the Stabilizing Period.

The over-allotment shares will be the same class and have all the same rights as the offer shares, including with respect to all dividends and other distributions, and will be traded on Tadawul on the same terms and conditions as the offer shares.

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