Aramco launches USD10B share sale in second public offering
(MENAFN) energy behemoth Aramco has embarked on its latest financial endeavor, initiating the sale of over USD10 billion worth of shares in what marks the company's second public offering. The offering encompasses 1.55 billion shares, representing 0.64 percent of the firm's total issued shares. In a statement to Tadawul, the Saudi oil giant disclosed that the price range for the shares has been established at SR26.70 to SR29 (USD7 to USD7.70) per share.
The book-building phase for institutional investors in this secondary offering is scheduled to span from June 2 to 6, while retail investors will have the opportunity to participate from June 3 to 5. This venture marks Aramco's second foray into the public market, following its monumental initial public offering (IPO) in December 2019, which garnered a staggering USD25.6 billion, setting a record as the largest flotation in history.
Aramco's press release outlines the scope of the offering, which targets institutional investors within Saudi Arabia, qualified institutional investors beyond Saudi borders in compliance with the Rules for Foreign Investment in Securities, and eligible retail investors in the Kingdom and other Gulf Cooperation Council (GCC) nations. Moreover, the offering extends beyond the Kingdom's borders, adhering to Regulation S under the US Securities Act of 1933.
Regulation S delineates guidelines stipulated by the US Securities and Exchange Commission (SEC), affirming that securities offered and sold outside the United States need not be registered with the SEC. This strategic move underscores Aramco's strategic approach to capitalizing on global investment opportunities while navigating regulatory frameworks with precision and diligence.
MENAFN03062024000045015839ID1108288684
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.