Aramco's Record IPO Starts November 17; Size of Offering Pending - Bloomberg

Aramco's Record IPO Starts November 17; Size of Offering Pending - Bloomberg:

Saudi Aramco will allow investors to start bidding for shares in the world’s most-profitable company from Nov. 17. It left potential buyers in the dark about the size of the stake it plans to sell and the pricing range.

The Saudi stock exchange rules prohibits the oil giant from listing additional shares for six months after the start of trading, according to its more than 650-page prospectus. Also, the Saudi government, the company’s sole owner, won’t offer any additional shares during the 12-month period after listing, but retains the right to sell to foreign governments or investors affiliated with foreign governments.



Key details:

• Institutional book-building period: Nov. 17-Dec. 4 
• Retail subscription period: Nov. 17-Nov. 28 
• Targeted percentage of shares allocated to individual investors will be up to 0.5% of shares
  Final pricing: Dec. 5 
• Refund of excess subscription amount to individual investors: Dec. 12 
• Aramco sets up share-incentive plan for employees 
• Click here for prospectus

Questions hang over #Saudi Aramco’s colossal valuation | Financial Times

Questions hang over Saudi Aramco’s colossal valuation | Financial Times:

Saudi Arabia has been pulling out the stops to entice potential investors in the stock market flotation of its state energy giant, in what could be the world’s biggest ever listing.

From changing royalty payments, cutting tax rates and reducing long-term capital expenditure to ensuring a minimum dividend of $75bn for shareholders, the kingdom has sought the highest possible valuation for Saudi Arabia’s main revenue source.

With earnings of $111bn last year, it dwarfs the profits made by Apple, the largest-listed profit maker in the world. It makes rival ExxonMobil’s net income of $20.8bn look paltry.

#SaudiArabia's Final Attempt To Boost Aramco's Valuation | OilPrice.com

Saudi Arabia's Final Attempt To Boost Aramco's Valuation | OilPrice.com:

Saudi Arabia is gearing up for the Aramco IPO, pulling out all the stops to boost the company’s valuation. But it’s a desperate attempt that is riddled with risk.

Saudi Arabia is reportedly bullying the ultra-rich in the country to invest their money in the offering, a pressure campaign that has echoes in the 2017 Ritz-Carlton shakedown.

Aramco is also dangling the possibility of larger-than-advertised dividend payouts to investors. “Aramco management has stressed the possibility of additional distributions to shareholders above and beyond the minimum dividend pledge,” Bank of America Merrill Lynch said in a report for investors seen by the Financial Times. Higher dividends would be made possible by borrowing, while the notion is also hinged on some optimistic assumptions on higher oil prices and steady increases in free cash flow.