‘Source of pride’ as investors scramble for Saudi Aramco shares

In this file photo, a sign of Saudi Aramco's IPO is seen during a news conference by the state oil company in Dhahran, Saudi Arabia on Nov 3, 2019. (Reuters Photo)
Updated 30 November 2019

‘Source of pride’ as investors scramble for Saudi Aramco shares

  • Institutional orders in the IPO included 54% from Saudi cooperates, 24.1% from Saudi funds and 10.5% from non-Saudi investors
  • The subscription period for institutional investors remains open to Dec. 4

DUBAI: Saudi Arabian and international investors have subscribed to the initial public offering of Saudi Aramco in huge numbers, with demand for shares in the world’s most profitable company exceeding the number of shares on offer.
Financial advisers to the biggest IPO in history announced that bids to the value of $44.3bn (166.275bn riyals) have been received in total from institutional and private investors for the $25.6bn worth of shares on offer.
With the order books open to institutions until next Wednesday, that means the IPO will definitely be the biggest in financial history, and should, in theory, lead to a jump in the share price when trading starts on Tadawul the following week.
Institutional demand for the shares even bigger than from private individuals. Corporates in the Kingdom account for more than half (54 percent) of the bid value, with Saudi funds and investment institutions comprising another big chunk (24.1 percent).
Non-Saudi investors are looking for 10 percent of the offer - a comparatively big figure given the fact the IPO was not marketed outside the region.
Rania Nashar, deputy chairman of Samba Capital, one of the advisers, said the IPO was “a source of pride” for the Kingdom.
“It is an indication of success and a signal of confidence, further bolstering the reputation and prestige of a company that has unrivaled standing globally in the energy sector. This success corroborates the foresight and depth of the strategic decision behind this landmark moment not just in Aramco’s history, but also in the development of the Kingdom’s economy,” she added.
Sarah Al Suhaimi, chief executive officer of NCB Capital and chair of the Tadawul where Aramco will be listed, said: “The success of the retail tranche is mirrored in the institutional tranche where bids reflect strong demand coming from across the spectrum of investor categories, reflective of Saudi Aramco’s compelling investment proposition.
“We are confident that this will be maintained throughout the remainder of the institutional book-building period. This institutional demand also speaks well of the depth and diversification of the Saudi capital markets and its investor base,” she added.


Saudi executive to head Arab League copyright team

Updated 21 January 2020

Saudi executive to head Arab League copyright team

JEDDAH: A Saudi Arabian candidate, Sami Al-Sudais, was named chairman of the Arab League’s Technical Committee for Intellectual Property on Tuesday.
The two-year unanimous appointment recognizes Al-Sudais’ work on intellectual property projects as executive vice president for Intellectual Property Policies and Partnerships at the Saudi Intellectual Property Authority (SAIP).
The decision came during the committee’s fifth meeting, organized by the Department of Intellectual Property and Competitiveness at the Arab League headquarters.
“One of the committee’s chief objectives is to enhance coordination in the domain of intellectual property in Arab countries, unify opinions and benefit from the experiences and capabilities in the Arab countries, and improve the intellectual property system in the Arab countries,” Al-Sudais said.
SAIP initiatives are aimed at strengthening the intellectual property system in the Kingdom in addition to preparing the national strategy for intellectual property, he added.
Intellectual property is a key aspect of Saudi Arabia’s Vision 2030 initiative to encourage business.
“Whenever we ensure that there is a compatible intellectual property system at the national level, we will ensure the facilitation of doing business as well as attracting foreign investment,” Al-Sudais said.

 
 

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