Saudi Arabia’s Aramco record the biggest deal in world’s IPO history

Saudi Arabia’s Aramco record the biggest deal in world's IPO history
Saudi Arabia’s Aramco record the biggest deal in world's IPO history

Initial public offering (IPO) of Saudi Arabia's Aramco snatched the biggest deal in history, raising $25.6 billion by selling shares in its state-owned oil giant, the company announced on Thursday, December 5th.

Saudi Aramco sold 3 billion shares at 32 riyals ($8.53) each in its IPO that means the deal raised more than China's Alibaba (BABA) in its 2014 public debut.

"Following the announcement by Saudi Arabian Oil Company (Saudi Aramco) (the "Company") on 17 November 2019 of the price range for the initial public offering of the Company (the "Offering"), the Company today announces the end of the Book-Building Period and the setting of the final offer price (the "Final Offer Price") for the Offering at SAR 32." The company said in a statement.

Confirmation of Offer Details

  • The Offeringsize (excluding any exercise of the Purchase Option) is 3,000,000,000 shares (collectively,the "Offer Shares"), comprising 1.5% of the Company's share capital.
  • The offeringprocess generated subscriptions by Institutional Subscribers of SAR397 billion/ USD106 billion, which, together with the total demand from IndividualInvestors in the Offering, equals SAR446 billion / USD119 billion, or 465% ofthe total Offer Shares (assuming no exercise of the Purchase Option).
  • The Offeringamount is SAR96.0 billion / USD25.6 billion (assuming no exercise of the PurchaseOption).
  • The Offer Sharesallocated to Individual Investors comprise 33.3% of the Offer Shares (which isequivalent to 0.5% of the Company's outstanding share capital) while the OfferShares allocated to Institutional Subscribers comprise 66.7% of the OfferShares (which is equivalent to 1.0% of the Company's outstanding share capital)(in each case, assuming no exercise of the Purchase Option).
  • For the purposesof allowing the Stabilising Manager to cover short positions resulting from anyover-allotments, the Selling Shareholder has granted the Stabilising Manager apurchase option (the "Purchase Option"), pursuant to which theStabilising Manager may purchase from the Selling Shareholder up to a maximumof 450,000,000 additional shares, representing 15% of the Offering size (the"Over-allotment Shares") at the Final Offer Price.

The Purchase Option will be exercisable in whole or in part upon noticeby the Stabilising Manager, at any time on or before 30 calendar days after thecommencement of trading of the shares on the Saudi Stock Exchange (Tadawul)(the "Stabilising Period").

  • In the eventthat the Purchase Option is exercised in full, the total Offering size will be 3,450,000,000shares, representing an Offer amount of SAR110.4 billion / USD29.4 billion.

KeyOffering Dates

Key Events Date
Deadline for payment of the subscription funds by Institutional Subscribers 11/4/1441H (corresponding to 8 December 2019G)
Refund of excess subscription monies (if any) to Individual Investors 15/4/1441H (corresponding to 12 December 2019G)
Expected trading commencement date for the Shares Trading of the Shares is expected to commence after all relevant legal requirements and procedures have been completed. An announcement of the commencement of trading of the Shares will be made on Tadawul's website (www.tadawul.com.sa).

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