Samba Capital and Investment Management Company (“SambaCapital”), in its capacity as Lead Manager, Joint Financial Advisor, Joint Global Coordinator, Joint Underwriter and Joint Bookrunner in the Initial Public Offering (“IPO”) of Saudi Saudi Aramco, announces the completion of the world’s largest IPO for the world’s largest oil company.
The listing of Saudi Aramco’s shares will take place tomorrow, Wednesday December 11, 2019 in the Saudi Stock Exchange (Tadawul).
The issue was over-subscribed with aggregate subscriptions amounting to SAR446bn representing coverage of 465%.
Furthermore, SambaCapital indicated that extending the period specified for the opening orders upon listing the company’s shares in Tadawul for an additional period of 30 minutes, as is the practice in most global markets, would allow for determining the price in a more effective way by allowing additional time for market dealers to place buy and sell orders.
This would also positively impact on the opening price.
Global Best Practices
SambaCapital stated that the management of the IPO process was carried out according to global best practices and the highest levels of professional standards in record time when compared to the experience of global markets.
SambaCapital also pointed out that the allocated shares for more than 5 million individual retail subscribers deposited in their portfolios less than 18 hours after the announcement of the final price.
Companies’ shares Trading
The listing and trading of the company’s shares on Tadawul will start just four working days after the end of the subscription phase.
After the refund of the surplus subscription monies for individual retail subscribers on Friday 6 December 2019.
This time frame is shorter than even the global markets standard.
Previously, SambaCapital had announced the allocation mechanics and the final results of the retail subscriptions, following the reconciliation and audit by the Receiving Banks.
The number of individual subscribers was 5.056 million, with a total subscription value of SAR49.2bn.
Saudi subscribers were also allocated 96.6% of the retail offering and non-Saudis (expatriates and GCC nationals) 3.4%.
The mechanics of the share allocation process for the Retail Tranche was also based on the allocation of up to 1500 shares for every subscriber.
This represented 97 .5% of the total number of individual subscribers, with the remaining shares allocated on a pro rata basis at 10.941%.
In addition to the final value of subscriptions totaled SAR397bn for the Institutional Tranche
This represented an over-subscription of 620% of the 2 billion shares offered in the Institutional Tranche.
This amounted to SAR64bn (assuming no exercise of the purchase option).
This allocation was according to the following percentages to the qualifying entities authorized to subscribe in this Tranche:
- Saudi companies (including listed companies, private companies, insurance companies and authorized persons), 37.5%.
- Public funds, private funds and funds managed by authorized persons, 26.3%.
- Saudi government institutions, 13.2%.
- Non-Saudi investors (including GCC investors, qualified foreign investors and non-resident investors through swap agreements), 23.1%.