RIYADH: Energy giant Aramco has begun the sale of more than $10 billion worth of shares in what is the second public offering from the Saudi-based firm.

The 1.55 billion holdings on offer represent 0.64 percent of the company’s issued shares, and in a Tadawul statement the oil firm revealed that the price range has been set between SR26.70 and SR29 ($7 to $7.70) per share.

The book-building process for institutional investors in the secondary offering will run from June 2 to 6, while the period for retail investors will run from June 3 to 5. 

This marks the firm’s second listing after its initial public offering in December 2019, which raised $25.6 billion, the largest flotation in history.

“The offering will be made to institutional investors in Saudi Arabia, institutional investors located outside Saudi Arabia who are qualified in accordance with the Rules for Foreign Investment in Securities to invest in listed securities and eligible retail investors in the Kingdom and other GCC (Gulf Cooperation Council) countries,” stated Aramco in a press release.  

It added: “Outside the Kingdom, the Offering will be made in compliance with Regulation S under the US Securities Act of 1933.”  

Regulation S is a series of rules that clarify the position of the US Securities and Exchange Commission that securities offered and sold outside the US don’t need to be registered with the SEC.  

The sale was initially announced on May 30, with a statement adding that the Saudi government currently holds 82.19 percent of the company’s issued shares. 

Upon closure of the secondary offering, the government will hold approximately 81.55 percent of the firm’s issued shares if the over-allotment option is not exercised. 

Investment banks added to the deal since it was announced on Thursday are Credit Suisse Saudi Arabia - part of UBS Group - as a domestic bookrunner alongside BNP Paribas, Bank of China International and China International Capital Corporation as foreign bookrunners, according to a stock exchange filing.

Already on the deal were Saudi National Bank's investment banking arm, which is the lead manager as well as global coordinator alongside Citi, Goldman Sachs, and HSBC, as well as JPMorgan, Bank of America and Morgan Stanley.

Al Rajhi Capital, Riyad Capital and Saudi Fransi are also domestic joint bookrunners.

In April, a survey conducted by UK-based Brand Finance named Aramco the most valuable brand in the Middle East, with a value of $41.5 billion. 

In May, the Saudi oil firm revealed its net profit for the first quarter of this year reached $27.27 billion, a rise of 2.04 percent compared to the last three months of 2023. 

According to the statement, Aramco’s total revenue for the three months to the end of March stood at $107.21 billion, with total operating income for the period reaching $58.88 billion.