Aramco says no change to stabilizing manager’s purchase option

Samba Capital, NCB Capital and HSBC Saudi Arabia, the joint financial advisors and joint global coordinators for Saudi Aramco’s IPO, said there is no change to the stabilizing manager’s purchase option.

The purchase option, which was initially announced on Dec. 5, will be exercisable in whole or in part upon notice by the stabilizing manager, at any time on or before 30 calendar days after the commencement of trading of the shares on the Saudi Stock Exchange (Tadawul).

Shares of Saudi Aramco will start trading on Tadawul tomorrow, Dec. 11 with a daily fluctuation limit of ±10%, Argaam reported.

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 ($29.4 billion).

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