Saudi Aramco announces secondary public offering of shares

The Government of Saudi Arabia and Saudi Aramco have announced the launch of a secondary public offering of ordinary shares of Saudi Aramco. The offering will commence on June 2, 2024, Report informs referring to Saudi Gazette.

The offering includes 1.545 billion shares of the Company, representing approximately 0.64% of the Company's issued shares. The price range for these shares is expected to be between SR26.70 and SR29.00 per share.

The Government and the Company are restricted from disposing of the Company's shares for six months following the closing date of the offering, expected to be June 11, 2024, subject to certain exceptions and unless waived by the Joint Global Coordinators. The offering is open to institutional investors in Saudi Arabia, qualified institutional investors outside Saudi Arabia, and eligible retail investors in Saudi Arabia and other GCC countries. Outside the Kingdom, the offering will comply with Regulation S under the US Securities Act of 1933, as amended.

Saudi Aramco will hold meetings with institutional investors from June 2 to June 6, 2024. Of the total offer shares, 154.5 million shares, representing 10%, will be allocated to retail investors, provided there is sufficient demand. Any updates or amendments to the offering terms, excluding the number of shares allocated to retail investors, will be announced.

The Government will receive all net proceeds from the offering and will reimburse the Company for all related fees, costs, and expenses, ensuring that the Company does not receive any proceeds from the offering and that there is no dilution of shares for other shareholders.