Aramco begins bookbuild for secondary offering

Logo of Saudi Aramco

Saudi Aramco begins today the bookbuilding process for institutional investors in its secondary public offering on the Main Market (TASI). It will run from today 9:00 am KSA time until 5:00 pm on June 6.

The announcement was made by SNB Capital, in its capacity as the lead manager, as well as Citigroup Saudi Arabia, Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, JPMorgan Saudi Arabia, Merrill Lynch Kingdom of Saudi Arabia, Morgan Stanley Saudi Arabia and SNB Capital as joint financial advisors and global coordinators, together with Al Rajhi Capital, Riyad Capital and Saudi Fransi Capital as joint bookrunners, and M. Klein and Co. and Moelis & Co. UK LLP as independent financial advisors.

The secondary public offering comprises 1.545 billion of Armaco’s share capital, representing nearly 0.64% of its issued shares.

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The price range was set between SAR 26.7 and SAR 29 per share.

In order to allow the stabilizing manager to cover short positions resulting from any over-allotments, the government has granted the stabilizing manager a greenshoe option, which allows the stabilizing manager to purchase from the government up to 10% of the offer shares, at the final offer price.

A total of 154.5 million shares, or 10% of the total shares on offer, were allocated for retail investors.