Aramco’s Secondary Offering Priced at SAR 27.25 per Share to Raise $11.2 Billion:
In a significant move to bolster its financial position,
Saudi Aramco has announced the final pricing for its secondary offering at SAR 27.25 per share.
This pricing, determined through a book-building process,
is expected to enable the company to raise approximately $11.2 billion,
marking the largest transaction of its kind globally in the past three years.
Topic
Offering Details
Aramco issued 1.545 billion shares, representing approximately 0.64% of its total issued shares.
Individual investors fully subscribed to their portion, with 1.33 million individuals participating.
As a result, Aramco will allocate 10% of the offering shares to individual investors
and designate the remaining 90% for institutional investors.
Greenshoe Option:
To provide greater flexibility in covering short sales resulting from additional share allocations,
The government has granted a “greenshoe” option.
This option allows the stabilization manager to purchase up to 10% of the offering shares
from the government at the final offering price.
The stabilization manager can exercise this option,
either wholly or partially, during 30 days starting
from the first day of trading the offering shares on the Saudi Stock Exchange,
expected to commence on June 9, 2024, and conclude on July 9, 2024.
If the greenshoe option is fully exercised,
The offering shares will represent approximately 0.7% of the company’s total issued shares.
Ownership and Control:
The Saudi government will retain a significant stake in Aramco, holding about 82%,
while the Public Investment Fund (PIF) holds approximately 16%.
This structure ensures that the Kingdom remains the primary shareholder in the company after the offering.
Management and Coordination:
Al Ahli Financial Company is leading the offering management and is acting
as a global coordinator alongside major global banks, including Citigroup,
Goldman Sachs, HSBC Holdings, JPMorgan, Bank of America,
and Morgan Stanley. Additionally, M. Klein & Co. and Moelis & Co
are serving as independent financial advisors for the offering.
Conclusion of the Offering and Trading:
Aramco will begin trading its offering shares on the Saudi Stock Exchange on Sunday, June 9, 2024.
Marking a new phase for the company, strengthening its economic position, and advancing its strategic ambitions.
Conclusion
With its pricing strategy that has attracted investors and positioned it at the forefront of global financial news,
Saudi Aramco continues to solidify its status as a major player in global financial markets,
reaffirming its commitment to providing robust and diverse investment opportunities.
Aramco’s Secondary Offering Priced at SAR 27.25 per Share to Raise $11.2 Billion.