Saudi Aramco officially announces intention for IPO on Tadawul

State oil giant Saudi Aramco has officially announced its intention to launch its initial public offering (IPO) on Tadawul, it said in a statement today.

The government plans to sell a portion of its shares in Saudi Aramco and will solely comprise of the existing ones, the statement noted.

The final offer price, number of shares to be sold, and percentage of the shares to be sold will be determined at the end of the book-building period.

The offering will be made available to qualifying individual and institutional investors.

The statement further said that the company and selling shareholders will be subject to restrictions on the sale, disposition or issuance of additional shares, the details of which will be provided in the upcoming prospectus.

The Capital Market Authority (CMA) has issued certain exemptions to streamline the application process for foreign investors, whereas Saudi nationals will have the benefit of the IPO Retail Incentive Arrangement.

However, the Saudi individual subscribers, who hold their shares continuously and without interruption for 180 days, will receive one bonus share for every ten shares bought during the subscription.