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Aramco Sets IPO Share Price Range Between SR30-32

Aramco Sets IPO Share Price Range Between SR30-32

Sunday, 17 November, 2019 - 12:30
Saudi Aramco logo pictured at the company's oil facility in Abqaiq, Saudi Arabia (File Photo: Reuters)

Saudi Aramco announced on Sunday the price range for the initial public offering (IPO) and the beginning of book building or offering period for institutional and individual investors, while the final pricing will be announced on December 05 during a press conference.

Aramco set an indicative share price between SR30 and SR32 riyals for the 1.5 percent of its outstanding shares – or about 3 billion shares of its 20 billion regular shares – that it would offer for the domestic part of its public offering.

Individual investors will subscribe based on a price of SR32, the top end of the price range, the company noted in a document.

The major IPO values Aramco between $1.6 and $1.7 trillion.

A brief bulletin issued by Saudi banks stated that the period of book building of Aramco is scheduled to start from Sunday, and will continue until December 4, accordingly.

It is expected that the company's shares will begin trading in the market after meeting all the requirements and completing all the related regulatory procedures.

The final pricing for the company shares would be announced on December 5, and Tadawul would make an announcement when the initial trading day would be, according to Aramco.

Aramco has promised to announce on Nov. 17 a price range for the shares it plans to sell in its awaited initial IPO next month. The company’s share capital is 200 billion ordinary shares with a capital of $16 billion.

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