Saudi Aramco announces final offer price for secondary public offering at SR27.25 per share

Saudi Gazette report

RIYADH — The final offer price for the secondary public offering of ordinary shares of Saudi Aramco has been set at SR27.25 per share, as announced by the Government of Saudi Arabia and Saudi Aramco on Friday. This follows the completion of the bookbuilding process.

The offering comprised a secondary public offering of 1.545 billion shares, representing approximately 0.64% of the company’s issued shares. The final offer price is the same for both institutional and retail investors.

Retail investors will receive a minimum allocation of 10 shares each, with the remaining shares allocated on a pro-rata basis, resulting in an average allocation factor of about 25.13%.

The retail offering was fully subscribed, attracting 1,331,915 subscribers. As a result, 10% of the offered shares will be allocated to retail investors, with the remaining 90% going to institutional investors.

Additionally, to cover short positions from any over-allotments, the government has granted the Stabilizing Manager an option to purchase up to 10% of the number of offered shares at the final offer price. This option, known as the Over-allotment Option or “greenshoe,” can be exercised in whole or in part within 30 days of the commencement of trading on the Saudi Exchange, expected to begin on June 9, 2024. If exercised in full, the offering will comprise approximately 0.70% of the company’s issued shares.