SAMA doubles leverage limits for Aramco IPO’s retail investors: Samba CEO
Saudi Arabia’s central bank, Saudi Arabian Monetary Authority (SAMA) has doubled the leverage limits for retail investors looking to buy shares in oil giant Saudi Aramco, Samba Financial Group’s Chief Executive Officer Rania Nashar said in an interview with Al Arabiya TV.
Banks will be permitted to give leverage to retail customers at a ratio of 2 to 1 for every riyal they put toward buying Aramco’s shares, up from the normal limit of 1 to 1.
Lenders will be allowed to give high-net-worth individuals and institutional customers higher leverage ratios based on each customer’s creditworthiness.
The world's largest oil exporter launched on Nov. 17 its initial public offering (IPO) for retail and institutional investors. The retail offering will close on Nov. 28, while the deadline to submit bid forms for institutional investors is set for December 4.