Saudi Aramco publishes 1.545B share secondary offering document

Logo of Saudi Aramco

Saudi Aramco published today, May 31, the secondary offering document to sell 1.545 billion shares on the Main Market (TASI).

The company officially announced the offering on May 30.

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The bookbuilding process will run from June 2-6.

The retail offer will start on June 3 and end on June 5 at 5 pm.

The offer shares represent nearly 0.64% of the company's issued shares. Aramco’s capital reaches SAR 90 billion, divided into 242 billion shares, at no nominal value.

The offer is limited to two tranches, institutional investors for which 1.39 billion shares, representing 90% of the total offer shares, will be allocated. Meanwhile, 154.5 million shares, or 10% of the total shares on offer, will be allotted to retail investors.

The government will receive the full net offer proceeds and will reimburse the company for all fees. Accordingly, Saudi Aramco will not receive any proceeds and the offering will not result in any dilution of the shares of the other shareholders of the company.

According to the offering document, the surplus or the full subscription amount will be refunded to retail investors in the following cases:

(a) If the final offer price is less than the retail offer price; (b) if the entire subscribed shares were not allotted to the retail investor; (c) if the final offer price is higher than the closing price of shares on the Saudi market on the last day of the bookbuilding period (June 6). If clause (C) applies, none of the offer shares will be allocated to individual subscribers.

The total subscription amounts will be refunded to individual subscribers (if this applies) without any commissions or deductions by the receiving banks.

The recovered amounts will be deposited into the accounts of individual subscribers as entailed in the subscription application, including any amounts related to fractional shares (if any).

Holders of the offer shares, as per the offering document, will be eligible for any dividends to be announced by the company as of the document date.