Aramco can not sell its shares directly to investors in the United States and other markets, as the initial public offering (IPO) will be restricted to Saudis and those foreign institutions permitted to invest in the kingdom's stock market.
Aramco's IPO size could be bigger if there is enough demand for it to use a 15 per cent "greenshoe" over-allotment option. The public listing is part of plans by Saudi Crown Prince Mohammed bin Salman to shake up the kingdom's economy and move it away from oil dependence.
In its original prospectus, published on Nov 9, Aramco said the domestic IPO would be made to institutional investors outside the United States according to Regulation S of the United States Securities Act of 1933, and inside the United States under the Rule 144A of the US Securities Act.
Aramco officials last week announced a share sale on the Riyadh stock market for the world's most profitable company, which pumps 10 percent of global oil supply.
"It was not worth it from their view". A 1.5% stake in the company would be around 3 billion shares.
Samba Capital & Investment Management Company has been designated as issue manager while National Commercial Bank, Saudi British Bank, Samba Financial Group, Saudi Investment Bank, Alawwal Bank, Arab National Bank, Albilad Bank, Aljazira Bank, Riyad Bank, Al Rajhi Bank, Alinma Bank, Banque Saudi Fransi and Gulf International Bank were named as receiving banks. It has said the strikes will not have a material impact on its business.
Aramco has scrapped plans to market the float to U.S. investors in favour of a careful focus on Middle Eastern institutional investors and ultra-high net worth individuals in the region where the company is confident of support.
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The final pricing for the Aramco shares would be announced on December 5, and Saudi Tadawul - the Kingdom's stock exchange - would make an announcement when initial trading day would be, the company added.
The offering - or book-building - period for institutional subscribers, which started today, closes on December 4 while the retail offering for individual investors will begin on November 21 and will end on November 28.
Earlier this year, Aramco raised $12 billion in its first global bond, gaining more than $100 billion in demand, in a deal that many saw as a pre-IPO relationship-building exercise with worldwide investors.
If priced at the top end, the deal could just beat the record-breaking $25bn raised by Chinese e-commerce giant Alibaba in 2014.
The company generated earnings before interest, tax and depreciation of $224 billion previous year, Fitch said, which is remarkably above the $82 billion of Apple or the $40 billion of Exxon Mobil.
Aramco mandated 27 banks to work on the deal, including Citigroup, Goldman Sachs, HSBC, JPMorgan and Morgan Stanley.