Saudi Arabia said that it has priced its stock at SR27.25 ($7.27), and that it will be selling shares of the oil firm Aramco to raise approximately $11.2 billion to finance its expenditure goals.
Aramco announced in a press release that the 1.545 billion shares, or around 0.64 percent of the company’s issued shares, were being offered in a secondary public offering. Based on the outcomes of the book-building process, the final offer price for institutional and retail investors was set at SR27.25 per share.
According to the corporation, each subscriber would get a minimum of 10 shares of each offering made to retail investors. The remaining shares would be dispersed pro rata at an average allocation factor of around 25.13 percent.
With 1,331,915 customers, the retail offering was fully subscribed. It further stated that individual investors will receive 10% of the offer shares, excluding shares issued under the over-allotment option, and institutional investors will receive the remaining 90% of the offer shares.
The government has given the stabilization manager a “greenshoe” option, which permits the purchase of up to 10% of the offer shares at the final offer price, to offset short positions resulting from any over-allotments.
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