Dhahran, June 1, 2024. Thursday marked the day when the Saudi Arabian Oil Company (Aramco) made the announcement that it will be holding a secondary public offering of ordinary shares on the following Sunday, June 2, 2024. More than 1.545 billion shares, or approximately 0.64% of the total number of shares issued by the corporation, are included in the offering. Shares of the sale are expected to be sold at a price that falls somewhere between SAR 26.7 and SAR 29 per share.
For the purpose of covering short positions that may be triggered by any over-allotments, the government has provided the stabilization manager with an option, which is referred to as the "greenshoe option" or the "over-allotment option." When the final offer price is reached, the stabilization manager has the ability to purchase up to ten percent of the offer shares from the government.
Once the offer shares begin trading on the Saudi Exchange (Tadawul), which is anticipated to take place on Sunday, June 9, 2024, the over-allotment option will become exercisable thirty calendar days after the offer shares begin trading. In the event that the over-allotment option is fully exercised, the offering will constitute about 0.7% of the total number of shares that are currently outstanding in the company.
After the closing date of the offering, which is most likely going to be June 11, both the government and the firm will be forbidden from selling any of the business's shares for a period of six months. Institutional investors in Saudi Arabia, institutional investors outside the Kingdom who meet the regulations for foreign investment in securities and seek to engage in listed securities, and retail investors in the Kingdom and other GCC countries who are eligible to participate in the offering will all be able to participate.
Additionally, the offering will be in accordance with Regulation S of the United States Securities Act of 1933 in its updated form. Between the dates of June 2 and 6, the company plans to engage in conversations with the various parties concerned.
Individual subscribers will get 154.5 million offering shares, which is equivalent to 10% of the entire number of offering shares, provided that there is adequate demand for the offering shares. An announcement will be issued in the event that the terms and circumstances of the offering are modified or revised. The announcement will emphasize that the number of offering shares that are allotted to certain subscribers will not change.
The offering document will be accessible on the website (www.aramco.com/share-offering) soon as it is published. Moelis & Company UK LLP and M. Klein & Company have been brought on board as independent financial advisors for the offering. This will ensure that the offering is provided with the greatest possible degree of expertise and professionalism.
The following financial institutions will be responsible for the coordination and book-running of the offering: Citigroup Saudi Arabia, Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, J.P. Morgan Saudi Arabia Company, Merrill Lynch Saudi Arabia, Merrill Lynch Kingdom of Saudi Arabia, Morgan Stanley Saudi Arabia, and SNB Capital Company.
It was decided that Al-Rajhi Capital, Riyad Capital, and Capital Saudi Fransi would serve as the [local] book-runners for the transaction. They are referred to as "book-runners" together with the coordinators who are responsible for the global operations.
In order to best manage the offering, National Bank Capital Company (SNB) was selected as the lead manager. Among the financial institutions that were appointed were the First Saudi Bank (SAB), Alinma Bank, Arab National Bank (ANB), Saudi National Bank, and Al-Rajhi Bank. Bank Riyad and Banque Saudi Fransi are going to be the recipients of the offering. Additionally, Merrill Lynch Kingdom of Saudi Arabia has been designated as the "Price Stabilization Manager" for the offering.
The offering will begin before the Saudi financial market opens, at 9:00 a.m. on Sunday, 11/25/1445 H, corresponding to 06/02/2024, while the period for building the order book for subscribing institutions will begin at 9:00 a.m. (Riyadh time) on Sunday, 11/25/1445 H, corresponding to 06/02/2024, and end at 5:00 p.m. (Riyadh time) on Thursday, 11/29/1445 H, corresponding to 06/06/2024.
On the other hand, the subscription period for individual subscribers starts at nine o'clock in the morning (Riyadh time) on Monday, November 26, 1445 H (06/03/2024) and remains open until five o'clock in the afternoon (Riyadh time) on Wednesday, November 28, 1445 H (06/05/2024).
An announcement regarding the final offering price and the distribution of shares to individuals and institutions who have subscribed will be made on Friday, December 1, 14:45 H, which is equivalent to October 6, 2024.
It has been stated by the company that the deadline for completing the implementation of Negotiated Trades (NT) is before 9:00 a.m. on Sunday, 12/03/1445 H, which corresponds to 06/09/2024. Additionally, the deadline for depositing shares in the investment portfolios of individual subscribers is also before 9:00 a.m. on Sunday, 12/03/1445 H, which corresponds to 06/09/2024.
After the implementation of the NT for subscribing institutions and the depositing of individual subscribers' shares in their investment portfolios on Sunday, December 3, 1445 H, which corresponds to September 6, 2024, it is anticipated that investors who have subscribed would be able to trade the offering shares on the Saudi financial market. By Tuesday, December 5, 1445 H, which is equivalent to June 11, 2024, the deadline for restoring surplus subscription amounts or, if applicable, the entire subscription cost to individual subscribers has passed.
The declaration of the cash settlement and repayment of the excess subscription amounts, or, if applicable, the whole subscription amounts, will take place on Tuesday, December 5th, 14:45 H, which is equivalent to June 11th, 2024. The conclusion of the offering and the total value of the final offering will be announced on Tuesday, December 5, 1445 H, which corresponds to June 11, 2024. The price stability period will begin on Sunday, March 12, 1445 H, which corresponds to June 9, 2024, and will continue until Tuesday, March 1, 1446 H, which corresponds to July 9, 2024.
