Samba Capital: The world's largest IPO is completed in a record time

The listing of Saudi Aramco's shares will take place tomorrow, Wednesday 9 December 2019G in the Saudi Stock Exchange (Tadawul). The issue was over-subscribed with aggregate subscriptions amounting to SAR 446 billion representing coverage of 465%.


Samba Capital and Investment Management Company (“Samba Capital”), in its capacity as Lead Manager, Joint Financial Advisor, Joint Global Coordinator, Joint Underwriter and Joint Bookrunner in the Initial Public Offering (“IPO”) of Saudi Saudi Aramco, announces the completion of the world’s largest IPO for the world’s largest oil company. The listing of Saudi Aramco’s shares will take place tomorrow, Wednesday 9 December 2019G in the Saudi Stock Exchange (Tadawul). The issue was over-subscribed with aggregate subscriptions amounting to SAR 446 billion representing coverage of 465%.

Samba Capital indicated that extending the period specified for the opening orders upon listing the company's shares in Tadawul for an additional period of 30 minutes, as is the practice in most global markets, would allow for determining the price in a more effective way by allowing additional time for market dealers to place buy and sell orders.  This would positively impact on the opening price.

Samba Capital stated that the management of the IPO process was carried out according to global best practices and the highest levels of professional standards. This was achieved in record time when compared to the experience of global markets.

Samba Capital also pointed out that the allocated shares for more than 5 million individual retail subscribers had been deposited in their portfolios less than 18 hours after the announcement of the final price. The listing and trading of the company’s shares on Tadawul will start just four working days after the end of the subscription phase following the refund of the surplus subscription monies for individual retail subscribers on Friday 6 December 2019.  This timeframe is shorter than even the global markets standard.

Previously, Samba Capital had announced the allocation mechanics and the final results of the retail subscriptions, following the reconciliation and audit by the Receiving Banks. The number of individual subscribers was 5.056 million, with a total subscription value of SAR 49.2 billion. Saudi subscribers were allocated 96.6% of the retail offering and non-Saudis (expatriates and GCC nationals) 3.4%. The mechanics of the share allocation process for the Retail Tranche was based on the allocation of up to 1500 shares for every subscriber, which represented 97 .5% of the total number of individual subscribers, with the remaining shares allocated on a pro rata basis at 10.941%.

For the Institutional Tranche, the final value of subscriptions totaled SAR 397 billion, which represented an oversubscription of 620% of the 2 billion shares offered in the Institutional Tranche amounting to SAR 64 billion (assuming no exercise of the purchase option).  This was allocated according to the following percentages to the qualifying entities authorized to subscribe in this Tranche:

  • Saudi companies (including listed companies, private companies, insurance companies and authorized persons), 37.5%.
  • Public funds, private funds and funds managed by authorized persons, 26.3%.
  • Saudi government institutions, 13.2%.
  • Non-Saudi investors (including GCC investors, qualified foreign investors and non-resident investors through swap agreements), 23.1%.


© Press Release 2019

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.

More From Press Releases