Aramco IPO to be launched for retail, institutional investors simultaneously: NCB Cap

Saudi Aramco will launch its initial public offering (IPO) for retail and institutional investors simultaneously, said Sultan Mousa, vice president of investment banking at NCB Capital, the company's financial advisor.

He added, during a press conference held by Aramco on Sunday, that the institutional investors tranche will last for 18 days, while the retail investors tranche will last for 10 days, noting that the duration is “adequate and enough” as per international standards. 

He further explained that the old listing process would usually take around five to six weeks on Tadawul, nevertheless, the Saudi government is working to expedite it to three weeks.

Mousa also noted that the retail investors will subscribe to the IPO at the limit up of the price range, while institutional investors will subscribe at the final price set following the pricing procedures.

“In case the final offering price is lower than the price range, retail investors will have the option of either being refunded the extra money paid, or allocated more shares (if available),” Mousa said.

He also said that the IPO is also open for non Saudi Nationals who is resident in the Kingdom, as well as to GCC nationals.

The allocation ratio between institutional and retail investors has not been set yet, and will be announced after completing order building, which will be followed by refunding extra cash to subscribers, announcing the final prospectus, and then finally the listing.

State oil giant Saudi Aramco has officially announced on Sunday its intention to launch its initial public offering (IPO) on the Saudi Stock Exchange (Tadawul).

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