Aramco’s Secondary Offering Priced at SAR 27.25 per Share to Raise $11.2 Billion

In a significant move to bolster its financial position, Saudi Aramco has announced the final pricing for its secondary offering at SAR 27.25 per share. This pricing, determined through a book-building process, is expected to enable the company to raise approximately $11.2 billion, marking the largest transaction of its kind globally in the past three years.

Topic

Offering Details

Conclusion

Offering Details

Aramco has issued 1.545 billion shares, representing about 0.64% of its total issued shares.
The shares allocated to individual investors were fully subscribed, attracting 1.33 million individual subscribers. Consequently, 10% of the offering shares will be allocated to individual investors, while the remaining 90% will be designated for institutional investors.

Greenshoe Option:

To provide greater flexibility in covering short sales resulting from additional share allocations,
the government has granted a “greenshoe” option.
This option allows the stabilization manager to purchase up to 10% of the offering shares
from the government at the final offering price.
The stabilization manager can exercise this option,
either wholly or partially, during a 30-day period starting from the first day of trading of the offering shares on the Saudi Stock Exchange, expected to commence on June 9, 2024, and concluding on July 9, 2024.
If the greenshoe option is fully exercised, the offering shares will represent approximately 0.7% of the company’s total issued shares.

Ownership and Control:

The Saudi government will retain a significant stake in Aramco, holding about 82%,
while the Public Investment Fund (PIF) holds approximately 16%.
This structure ensures that the Kingdom remains the primary shareholder in the company after the offering.

Management and Coordination:

Al Ahli Financial Company is leading the offering management and is acting
as a global coordinator alongside major global banks including Citi Group,
Goldman Sachs, HSBC Holdings, JPMorgan, Bank of America,
and Morgan Stanley. Additionally, M. Klein & Co and Moelis & Co
are serving as independent financial advisors for the offering.

Conclusion of the Offering and Trading:

The trading of the offering shares is anticipated to begin on the Saudi Stock Exchange
on Sunday, June 9, 2024, marking a new phase for Aramco,
reinforcing its economic position and supporting its strategic ambitions.

Conclusion

With its pricing strategy that has attracted investors and positioned it at the forefront of global financial news,
Saudi Aramco continues to solidify its status as a major player in global financial markets,
reaffirming its commitment to providing robust and diverse investment opportunities.

Aramco’s Secondary Offering Priced at SAR 27.25 per Share to Raise $11.2 Billion

Aramco&#8217;s Secondary Offering Priced at SAR 27.25 per Share to Raise $11.2 Billion

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Aramco’s Secondary Offering Priced at SAR 27.25 per Share to Raise $11.2 Billion