Saudi Aramco issues prospectus, IPO to kick off on Nov. 17

Saudi Aramco, the world’s biggest oil producer, has issued on Nov. 9 prospectus for its initial public offering (IPO) on the Saudi Stock Exchange (Tadawul) after obtaining the approval of the Capital Market Authority (CMA).

The IPO and book-building process will begin on Nov. 17 and will run through Dec. 4.

The retail offering will run from Nov. 17- Nov. 28, 2019.

A maximum of 0.5 percent of the offered shares will be allocated to retail investors, while no maximum limit was set for institutions. The minimum subscription limit for retail investors stands at 10 shares, with no maximum limit.

The IPO targets two tranches:

Institutional investors comprises all categories of investors entitled to participate in the book-building process.

Retail investors: comprises Saudi nationals, including any Saudi female divorcee or widow with minor children from a non-Saudi father, as she can subscribe for her own benefit or in the names of her minor children, on the condition that she proves that she is a divorcee or widow and the mother of her minor children; and any non-Saudi natural person who is resident in the Kingdom and any GCC national, in each case who has a bank account with one of the receiving entities;

The Saudi government and Saudi Aramco will set the number of shares allocated for institutional investors through the book-building process in coordination with the financial advisors/global coordinators.