Aramco Is Said to Explore Incentives to Reward Loyal IPO Buyers - Bloomberg

Aramco Is Said to Explore Incentives to Reward Loyal IPO Buyers - Bloomberg:

Saudi Aramco is exploring ways to reward loyal investors in its initial public offering to ensure the record share sale isn’t followed by a wave of selling, people with knowledge of the matter said.

One potential measure that Aramco has discussed with Saudi regulators is whether it could offer bonus shares to retail stock buyers who keep their holdings for six months, one of the people said. Aramco is looking to reduce market volatility after it begins trading as well as provide a benefit to mom-and-pop buyers who expect a windfall from local listings, the people said, asking not to be identified because the information is private.

Aramco faces a delicate balance as it seeks to push its IPO valuation as close as possible to $2 trillion -- a figure that’s been met with skepticism from many professional investors -- while making sure it’s attractive to potential Saudi buyers. It’s planning to rely more on local funds after mixed feedback from international money managers forced the company to delay the offer’s kickoff, Bloomberg News reported this week.