Merrill Lynch says Aramco’s price stabilization period ends

Merrill Lynch Kingdom of Saudi Arabia, the stabilizing manager of Saudi Aramco's secondary offering, said that the oil giant’s price stabilization period has ended and exercised the over-allotment, or greenshoe, option.

 

 

A notice was submitted to the issuer, Saudi Aramco, as regards its exercise of the overallotment option in respect of 154,500,000 ordinary shares at an offering price of SAR 27.25 per overallotment share.

 

Given that no stabilization transactions were undertaken during the stabilization period, following the exercise of the over-allotment option, the total offering size will be 1.67 billion ordinary shares, representing a total offering amount of SAR 46.31 billion (USD 12.35 billion).

 

For the avoidance of doubt, the 1.54 billion shares subject to the overallotment option will be used by the stabilizing manager to redeliver the shares borrowed and sold in the offering.

 

Therefore, no additional shares are being offered into the market today, and the stabilizing manager will not hold any shares in the issuer as a result of the exercise of the overallotment option.