Saudi Aramco Issues IPO Prospectus
23:40 09.11.2019(updated 01:53 10.11.2019)
An earlier statement by Saudi Arabia's state-owned oil company, Saudi Aramco, reported profits for the first nine months of this year at $68 billion out of $244 billion in revenue for the same period.
According to what is described as the most profitable company in the world, the Saudi Aramco prospectus confirms an offer of up to 0.5 percent of its shares to individual investors, adding that selling shareholders will receive all of the proceeds of the offering and will reimburse Saudi Aramco for all fees, costs and expenses.
The document also stresses that the company will be prohibited from listing additional shares for a period of six months after the commencement of trading on the exchange.
According to the company's prospectus, institutional investors can apply for Saudi Aramco's IPO between 17 November and 4 December. Individual investors can apply between 17 and 28 November.
Last week, the nation's Capital Markets Authority announced that they had agreed to approve Saudi Aramco's request to partially place shares; first on the local Tadawul stock market, and then abroad, up to a total of 5 percent of company shares.
According to media reports, share trading will commence on 11 December.
Security concerns in the region are reported to be diminishing the attractiveness of the IPO to institutional investors, lowering the listing price on the kingdom's stock exchange.
Company oil facilities in Abqaiq and Khurais were attacked and partially destroyed in September, which temporarily cut Saudi oil production by half and resulted in a decrease of 5 percent in the world's oil output. Although the facilities have largely been repaired concern over vulnerability remains, especially amid the ongoing war currently being waged by Riyadh and its partners against the Houthi political movement in Yemen and other tensions with regional neighbors.
|Join the GlobalSecurity.org mailing list|