BCN-04 Aramco says IPO oversubscribed for individual investors

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ZCZC

BCN-04

SAUDI-ECONOMY-ARAMCO

Aramco says IPO oversubscribed for individual investors

RIYADH, Nov 30, 2019 (BSS/AFP) – Saudi oil giant Aramco said on Friday that
applications from private investors for its planned stock market offering had
been oversubscribed.

The much-delayed initial public offering, first announced in 2016, is a
cornerstone of Saudi Crown Prince Mohammed bin Salman’s ambitious plan to
diversify the Gulf state’s oil-reliant economy.

The IPO could exceed the world’s biggest to date — the $25 billion float
of Chinese retail giant Alibaba in 2014.
On November 17, Saudi Aramco said it would sell 1.5 percent of the company
in an initial public offering worth $24-25.6 billion.

“Retail subscriptions, which concluded last night, reached 47,411,624,960
Saudi riyals” ($12.6 billion, 11.5 billion euros), with almost five million
subscribers for nearly 1.5 billion shares, Friday’s statement said.

Aramco had said it would reserve a portion of the IPO’s shares for
institutional investors, including foreign companies, and individual
investors, Saudi citizens and Gulf states.

A maximum of 0.5 percent of the 200 billion shares will go to individual
investors, the statement said.

It said subscriptions and bids during the first 12 days of the offer period
totalled more than 166 billion riyals ($44.3 billion, 40.2 billion euros).

The statement quoted Rania Nashar, Deputy Chairman of Samba Capital, as
saying the high turnout and subscription rates was “a source of pride, an
indication of success and a signal of confidence”.

Institutional bids received during the first 12 days of the book-building
period, which continues until December 4, now stand at more than 118 billion
riyals ($31.5 billion, 28.6 billion euros), Aramco said.

Saudi Arabia is pulling out all the stops to ensure the success of the IPO,
a crucial part of Prince Mohammed’s plan to wean the economy away from oil by
pumping funds into megaprojects and non-energy industries.

The economic jewel of Saudi Arabia produces about 10 percent of the world’s
oil and is considered the pillar of the kingdom’s economic and social
stability.

BSS/AFP/HR/0915