Here are restrictions on Saudi Aramco's shares during lock-up period

State-owned major oil producer Saudi Aramco said the Saudi government (substantial shareholder) will be subject to lock-up periods, with limited exceptions.

Statutory Lock-up Period: 

The Saudi government will be prohibited from disposing of its shares for six months starting from the debut date on Tadawul.

Exceptions

The Saudi government may sell its shares throughout the lock-up period to the following:

1) any foreign government or its government-related entities as defined in the QFI Rules

Any foreign strategic investor affiliated with a foreign government.

2) The Saudi government shall publicly announce any disposition of shares made pursuant to the aforementioned exceptions promptly after such disposition during the statutory lock-up period.

Meanwhile, Saudi Aramco will be prohibited from listing additional shares for a period of six months, following the commencement of trading on Tadawul (equivalent to the statutory lockup period).

Contractual Lock-Up Period

Under the undertaking and coordination agreements, the Saudi government may not dispose of its shares in the company and Saudi Aramco will not issue new shares during the contractual lock-up period except after obtaining an approval of one third or more of the joint global coordinators. 

The world's largest oil exporter and the Saudi government also agreed on the following:

- The Saudi government will not sell any of its shares during the twelve-month period following the debut date on the Saudi exchange, except to any foreign government (or its government-related entities as defined in the QFI Rules) or any foreign strategic investor affiliated with a foreign government.

The agreement with the procuring entity shall include that it is subject to the remainder of the contractual lock-up period as specified in the prospectus and as provided for in the underwriting agreement, as well as any restrictions or prohibitions imposed by applicable rules and regulations, and any other restrictions agreed with the procuring entity.

- Saudi Aramco will not issue new shares during the contractual lock-up period.

The transfer of bonus shares by the Saudi government to eligible retail bonus investors will not be subject to the contractual lock-up period, after the expiry of the statutory lock-up

period.

For more details about Saudi Aramco IPO