Saudi Aramco explains IPO allocation mechanism

State-owned Saudi Aramco said allocation of shares in its initial public offering (IPO) does not depend on the date on which when investor applications were submitted, adding all applications made during the defined period will be treated in the same manner.

The major oil producer and the selling shareholder, in their full discretion and in consultation with the joint financial advisors and the joint global coordinators, will determine the number of shares to be allocated to retail investors.

For the refund of surplus, in case the final offer price was less than SAR 32 per share, retail investors can either:

1) Receive any surplus subscription amount resulting from the difference between the retail subscription price and the final offer price refunded in cash by crediting the account of such individual investor;

2) Or an allotment of additional offer shares.

Retail subscription forms cannot be amended or withdrawn once submitted, Saudi Aramco added.

Saudi Aramco kick started on Nov. 17 its much anticipated IPO, floating a 1.5% stake on the local stock exchange, Argaam reported.

The retail offering will close on Nov. 28, while the deadline to submit bid forms for institutional investors is set for December 4.

For more details about Saudi Aramco IPO