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Stock Analysis, IPO, Mutual Funds, Bonds & More

Saudi Aramco's record IPO starts November 17, prospectus says

After years of delays and false starts, Aramco officials last week announced a share sale.

AFP|
Nov 10, 2019, 11.32 AM IST
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Riyadh: Saudi Aramco's much-anticipated initial public offering will begin on November 17, the company's prospectus said, without revealing the size of the stake sale or the pricing range.

The 658-page document, released just before midnight Saturday, said the final share price will be determined on December 5 -- a day after the subscriptions close -- in what is expected to be the world's biggest IPO.

After years of delays and false starts, Aramco officials last week announced a share sale on the Riyadh stock exchange for the world's most profitable company, which pumps 10 per cent of the world's oil.

The prospectus said the state giant will sell up to 0.5 per cent of its shares to individual investors while it has still not decided on the percentage for larger institutional investors.

"The targeted percentage of offer shares allocable to individual investors will be up to 0.5 per cent of the shares," the prospectus said.

The document also highlighted risks including the potential for terrorist attacks, the possibility of antitrust legislation and climate change concerns that could reduce global demand for hydrocarbons.

But investors in Saudi Arabia appear to be salivating at the prospect of owning a piece of the company -- seen as the kingdom's crown jewel -- in the IPO.

It would be the world's biggest if it eclipses Chinese retail giant Alibaba's $25 billion listing in 2014.

The prospectus named a host of international banking giants -- from Citibank to Credit Suisse and HSBC -- that it has hired as financial advisors and bookrunners.

Saudi Arabia is pulling out all the stops to ensure the success of the IPO, a cornerstone of Prince Mohammed's ambitious plans to steer the economy away from oil by pumping tens of billions of dollars into a host of megaprojects and non-energy industries.
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