Saudi Aramco to announce IPO price range on November 17
Saudi Aramco’s price range for its initial public offering (IPO) will be determined on November 17, while the announcement of the final offer price will be on December 5, the company confirmed to Al Arabiya English.
The deadline to submit bid forms for institutional investors, such as banks or hedge funds, is set for December 4, while the deadline for retail investors – otherwise known as individual investors – is set for November 28, the company confirmed to Al Arabiya English.
As the energy giant prepares to debut on the Saudi Stock Exchange (Tadawul) on December 11, retail investors will have access to 0.5 percent of the company, or 1 billion shares, according to its prospectus. Aramco is yet to announce the total percentage of the company being listed.
According to a document seen on the Aramco’s official website, Saudi Arabian retail investors that hold their shares for a minimum of 180 days, or six months, will be eligible for a 10 percent discount through the allocation of additional bonus shares.
Sources previously told Al Arabiya that the company will list 2 percent on the Saudi market as part of its first phase in going public.
Saudi Arabia is targeting a $2 trillion valuation for the IPO, while analysts have forecast a valuation between $1.2 trillion to $1.8 trillion.
Global asset management firm Alliance Bernstein, among other banks, has predicted a valuation between $1.2 trillion to $1.5 trillion.
Aramco in its IPO prospectus said that it may pay up to $100 million per year in “services and studies” for Saudi Arabia’s Ministry of Energy, while also flagging possible risks that may impact its financial position and operations, such as oil price fluctuation, geopolitical tensions, and fluctuating supply and demand of hydrocarbons.