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Saudi government raises SAR 42.1bn in Aramco’s 2nd IPO

Saudi government raises SAR 42.1bn in Aramco’s 2nd IPO
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Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) has completed the secondary public offering of ordinary shares by the government, setting the final offer price at SAR 27.25 per share.

The initial public offering (IPO) raised gross proceeds of SAR 42.10 billion for the government, according to a bourse statement.

Subject to the over-allotment Option, the gross proceeds t from the offering would increase to SAR 46.31 billion.

The government sold 1.54 billion shares, representing around 0.64% of Aramco’s issued shares.

The offering marks the largest secondary offering in EMEA since 2000 and the largest ECM offering in the Middle East, after the company’s own IPO in 2019.

Amin Nasser, President and CEO of Aramco, said: “This landmark transaction achieves the goals of diversifying and broadening Aramco’s shareholder base with strong participation from new international and local investors, further supporting the liquidity of our shares.”

“The success of the offering demonstrates our track-record of operational and financial performance since our record-setting IPO in 2019,” Nasser stated.

He added: “It reflects growing recognition of our competitive strengths and long-term growth strategy across an expanding global portfolio.”

SNB Capital is the lead manager of the offering. Alinma Bank, Al Rajhi Banking and Investment Corporation, Arab National Bank (ANB), Banque Saudi Fransi, Riyad Bank, Saudi Awwal Bank (SAB), and the Saudi National Bank (SNB) acted as the receiving entities for the offering.

Citigroup Saudi Arabia, Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, J.P. Morgan Saudi Arabia Company, Merrill Lynch Kingdom of Saudi Arabia, Morgan Stanley Saudi Arabia, and SNB Capital Company acted as the joint financial advisors.

As of 31 March 2204, Aramco recorded an annual drop of 14.44% in net profit to SAR 102.27 billion, compared to SAR 119.54 billion.