Retail subscription to Aramco's secondary offering begins today

Logo of Saudi Aramco

Retail investors began today, June 3, subscribing to Saudi Arabian Oil Co.'s (Saudi Aramco) secondary public offering of 154.5 million shares on the Saudi Exchange Main Market (TASI).

Shares offered to retail subscribers represented 10% (or SAR 1.554 billion) of Aramco’s share capital.

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The offered shares constitute about 0.64% of the company's issued shares, as Aramco is capitalized at SAR 90 billion, divided into 242 billion shares (at no par value).

The retail subscription will end on June 5 at 5:00 pm.

The price range for the retail offering was set at SAR 26.7-29 per share.

The bookbuilding process for institutional subscribers to Aramco's secondary offering began on June 2.

Retail investors can subscribe to 10 shares, or its multiples, at SAR 29. No shares will be allocated to the retail investors at a price higher than the final offering price, which will be announced after the end of the book-building process on June 7.

Surplus will be refunded, representing the variance between the subscription price (SAR 29) and the final offer price plus the value of subscribed, unallocated shares.

The following table illustrates an example for an individual investor that bought 100 shares (assuming that the final offer price is less than the stock closing on June 6) as follows:

An example of a retail subscriber for 100 Aramco shares

The world’s largest oil exporter officially announced its secondary offering on May 30 and published the related document on May 31.