Aramco says no price stabilization executed as of Dec. 31

Saudi Arabian Oil Co. (Saudi Aramco) said no price stabilization transactions have been executed as of December 31, 2019.

The state-owned firm announced receiving an addendum notification from Goldman Sachs Saudi Arabia, the stabilizing manager, regarding the initial public offering (IPO) of the issuer’s shares.

Goldman Sachs announced that it may stabilize the offer of the following securities, in accordance with the price stabilization mechanism in IPOs.

Saudi Aramco shares were listed and started trading on Wednesday, December 11, 2019.

The selling shareholder has granted the stabilizing manager a purchase option to allow it to cover short positions resulting from any over-allotments, pursuant to which the stabilizing manager may purchase from the selling shareholder up to a maximum of 450 million additional shares, representing 15% of the offering size at the final offer price.

In case the purchase option is exercised in full, the total offering size will be 3.45 billion shares, representing an offer amount of SAR 110.4 billion.