Saudi Arabia's national oil company Saudi Aramco has released its prospectus ahead of its initial public offering (IPO) on the Saudi Tadawul stock exchange, which will open the subscription period on 17 November 2019. The size of the stake to be sold were not disclosed. Up to 0.5% of the company's shares will be sold to individual investors that will have to subscribe by 28 November. For institutional investors, the subscription period will be extended to 4 December; the volume of shares to be sold to institutional investors remains to be determined. As well, the final share price will be determined on 5 December 2019, i.e. the day after the subscription close.
Saudi Aramco will offer 1 bonus share for every 10 allocated shares to retail investors during a 180-day "bonus holding period" following the first day of trading. Saudi investors and nationals would be eligible to up to 100 bonus shares for every 10 allotted shares. Non-Saudi nationals who are not resident in the country and institutions other than Qualified Foreign Investors incorporated outside the country will be allowed to take part in the IPO by entering into swap agreements. The government of Saudi Arabia will have a 12-month "lock up" period after the IPO, during which it will offer no additional shares in Saudi Aramco.
Saudi Aramco is one of the largest integrated oil and gas company in the world. In 2018, the company produced 13.6 mboe/d of oil and gas, including 10.3 mb/d of crude oil. The sale of a 5% stake in the company was initially announced in January 2016 and expected in late 2018, but it was delayed due to market volatility and plans to merge with the petrochemicals producer SABIC.