Saudi Aramco sets IPO share price between 30-32 riyals

This photograph supplied by Saudi Aramco shows employees performing their duties on Nov. 17, 2019. (Supplied)
Updated 17 November 2019

Saudi Aramco sets IPO share price between 30-32 riyals

  • Saudi Aramco intends to buy $1 billion worth of shares for employee

DUBAI: Saudi Aramco’s multibillion-dollar initial public offering (IPO), probably the biggest in history, shifted to full gear as its share price was announced and subscription to the world’s biggest oil company commenced on Sunday.

Saudi Aramco set an indicative share price between 30 and 32 riyals for the 1.5 percent of its shares – or about 3 billion shares of its 20 billion regular shares – that it would offer for  the domestic part of its public offering. The blockbuster IPO could be worth least $24 billion, and values the state-owned oil giant at up to $1.71 trillion.

The offering – or book-building – period for institutional subscribers, which started today, closes on December 4 while the retail offering for individual investors will begin on November 21 and will end on November 28.

The final pricing for the Aramco shares would be announced on December 5.

___

For more of our coverage of the Aramco IPO, click here.

To view key Aramco IPO documents, click here.

___

Samba Capital & Investment Management Company has been designated as issue manager while National Commercial Bank, Saudi British Bank, Samba Financial Group, Saudi Investment Bank, Alawwal Bank, Arab National Bank, Albilad Bank, Aljazira Bank, Riyad Bank, Al Rajhi Bank, Alinma Bank, Banque Saudi Fransi and Gulf International Bank were named as receiving banks.

If there are applications for more than the 0.5 percent on offer — amounting to 1 billion shares — allocations to private investors will be scaled back proportionate to demand; if there are fewer applications than the 0.5 percent when all maximum applications are satisfied, private investors can have the over-payment refunded either in cash via the receiving banks or in the form of extra shares in Aramco.

There is an incentive mechanism in the IPO whereby Saudi investors will receive a bonus one-for-ten allocation of shares, up to a maximum of 100 shares, if they do not sell shares in the market for a period of six months after dealings begin in December, at a date still to be determined.

Saudi Aramco also intends to buy $1 billion worth of shares for employees under a plan to incentivize executives and staff members alongside the IPO next month.

The plan — which was disclosed in the IPO prospectus — will involve Aramco buying the shares from the government and making them available for employees under special terms.


New Zealand volcano eruption death toll rises to 18 as body search continues

Updated 11 min 26 sec ago

New Zealand volcano eruption death toll rises to 18 as body search continues

  • A land search early Sunday failed to find any sign of bodies and divers returned to the sea in the afternoon
  • Disaster has raised questions about why tourists were allowed on a volcano where experts had recently raised threat levels

WELLINGTON: The death toll from New Zealand’s White Island volcano eruption rose to 18 Sunday, including two people whose bodies have not been recovered, police said.
A land search early Sunday failed to find any sign of the missing pair and divers returned to the sea in the afternoon amid increasing speculation both could be in the water.
Deputy police commissioner Mike Clement said there was “every chance” the bodies had been washed into the sea from the stream where they were last seen Monday.
He added that searchers were “satisfied that the area we searched near the jetty is clear of the bodies.”
“The rescue teams are frustrated. We understand completely how frustrating it is for loved ones who want the bodies back,” Clement said.
Forty-seven people were on the island — a popular tourist attraction — when the explosion happened.
The death toll now stands at 18 after an Australian victim who had been repatriated to Sydney died in hospital almost a week after the deadly eruption.
Another 26 survivors remain in New Zealand and Australian hospitals, of which 20 are listed as “critical” and fighting for their lives after the eruption on the desolate island, which is the country’s most active volcano.
The family of the latest victim have requested his name and age not be released.
Police on Sunday named seven victims who have been officially identified including New Zealand tour guide Tipene James Te Rangi Ataahua Maangi, 24.
Four were Australians — Zoe Ella Hosking, 15, her stepfather Gavin Brian Dallow, 53, 51-year-old Anthony James Langford and Karla Michelle Mathews, 32 — along with Matthew Robert Hollander, 13 and Berend Lawrence Hollander, 16, who were US citizens with Australian permanent residency.
Clement said although the land and sea searches had so far been unsuccessful in finding the remaining bodies, police had not given up hope.
“There will come a time when we’ve done everything we can do, when we’ve done everything that’s sensible but we’re not there yet... we don’t give up easily,” he said.
Scientists monitoring White Island said there had been no further significant activity since last Monday’s eruption but the risk remained.
A glow was visible from the vent area overnight “which confirms there is a high heat flow present,” said Geoff Kilgour, a volcanologist with GNS Science, which monitors seismic and volcanic activity in New Zealand.
“This has been confirmed today by an aerial observation this morning that noted an active crater is emitting volcanic gas at a high rate and very high temperature” above 200 Celsius.
The disaster has raised questions about why tourists were allowed on a volcano where experts had recently raised threat levels.