The Aramco IPO caught the attention of traders after the Saudi oil company announced the offering of about 1.545 billion shares, or 0.64% of Aramco shares, at a price ranging between 26.7 riyals and 29 riyals per share, for a total of just under $12 billion when reaching the upper end of the range.
The period for individuals to subscribe to Aramco’s secondary public offering is scheduled to begin today, Monday, June 3, and end on Wednesday, June 5.
Aramco's secondary offering of shares in Saudi oil company Aramco saw increased demand for the shares offered for sale within hours of the start of receiving applications yesterday, Sunday, in a deal that could raise up to $13.1 billion.
The banks participating in the process are scheduled to receive requests from institutional investors until Thursday, and will price the shares the following day. Trading is expected to begin next Sunday on the Saudi Stock Exchange in Riyadh.
One of the bookrunners for Aramco's secondary offering announced that the book was fully covered for the deal within the price range, meaning that demand exceeded supply in the offering.
Banks could increase the offer by another $1 billion. If all the shares are sold, the Saudi government will reduce its stake in the world’s largest oil exporter by 0.7%.
Credit Suisse Saudi Arabia, a unit of UBS Group, along with BNP Paribas, Bank of China International and China International Capital Corporation are helping to find buyers for the shares, a bourse filing said today.
About 10% of the new Aramco IPO will be allocated to individual investors, based on demand.
The world's largest investment banks are helping to manage the sale process, including Citi, Goldman Sachs, HSBC, JPMorgan, Bank of America and Morgan Stanley, along with local institutions, including the National Commercial Bank of Saudi Arabia, Al Rajhi Capital, Riyad Capital and Saudi Fransi.
