Riyadh, Saudi Arabia – Energy giant Saudi Aramco commenced its second public offering (SPO) on June 2nd, 2024, aiming to raise over $10 billion. This offering follows Aramco’s historic initial public offering (IPO) in December 2019, which remains the largest IPO ever conducted.
Key Details of the Aramco Secondary Offering:
- Offering Size: 1.55 billion shares, representing 0.64% of Aramco’s issued shares.
- Price Range: SAR 26.70 to SAR 29.00 per share (approximately $7.00 to $7.70).
- Bookbuilding Process:
- Institutional Investors (Saudi Arabia): June 2nd to June 6th, 2024.
- Retail Investors (Saudi Arabia and GCC): June 3rd to June 5th, 2024.
Additional Information:
- The offering targets institutional investors within and outside Saudi Arabia, alongside retail investors in the Kingdom and other GCC countries.
- The sale follows the Saudi government’s current ownership of 82.19% of Aramco’s shares. Upon completion, this stake will decrease to approximately 81.55% (excluding the over-allotment option).
- The deal involves a syndicate of leading investment banks, including Saudi National Bank (lead manager), Citi, Goldman Sachs, HSBC, JPMorgan, Bank of America, Morgan Stanley, Credit Suisse Saudi Arabia, BNP Paribas, Bank of China International, China International Capital Corporation, Al Rajhi Capital, Riyad Capital, and Saudi Fransi.
Aramco’s Strong Financial Performance:
- In April 2024, Aramco secured the title of the most valuable brand in the Middle East by Brand Finance, with a brand value of $41.5 billion.
- The company reported a net profit of $27.27 billion for the first quarter of 2024, reflecting a 2.04% increase compared to the previous quarter.
- Aramco’s total revenue for Q1 2024 reached $107.21 billion, with total operating income standing at $58.88 billion.
This secondary offering signifies Aramco’s continued confidence in the global energy market and its commitment to shareholder value.
The offering extends beyond Saudi Arabia’s borders. Institutional investors located outside the Kingdom who meet the qualifications outlined in the Rules for Foreign Investment in Securities can also participate.
A Well-Supported Offering with Leading Financial Institutions on Board
The Aramco SPO is backed by a robust syndicate of prominent investment banks. This syndicate includes heavyweights like Saudi National Bank (lead manager), Citi, Goldman Sachs, HSBC, JPMorgan, Bank of America, and Morgan Stanley. Additionally, Credit Suisse Saudi Arabia, BNP Paribas, Bank of China International, China International Capital Corporation, Al Rajhi Capital, Riyad Capital, and Saudi Fransi lend their expertise to the offering. This impressive lineup ensures a smooth and successful execution of the SPO.
A Strategic Move for Continued Growth
With this strategic secondary offering, Aramco is poised to unlock significant capital that can be used to fuel further growth and expansion. This move demonstrates the company’s confidence in the global energy market and its commitment to delivering long-term value to its shareholders. The offering presents a compelling opportunity for investors seeking exposure to a leading energy giant with a bright future.
