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Saudi Arabia takes orders for new Aramco share sale
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Saudi Arabia takes orders for new Aramco share sale
Jun 2, 2024 12:45 AM

DUBAI, June 2 (Reuters) - Saudi Arabia added four more

banks for its secondary share offering of oil giant Aramco

, as the advisers began taking orders on Sunday for the

sale that could eventually raise up to $13.1 billion, 4-1/2

years after its record initial public offering.

The Saudi government may sell up to a 0.7% stake in the

world's top oil exporter. The banks on the deal will take orders

through Thursday and it will price the following day, with the

shares expected to start trading next Sunday on Riyadh's Saudi

Exchange.

The investment banks added to the deal since it was

announced on Thursday are Credit Suisse Saudi Arabia - part of

UBS Group - as a domestic bookrunner alongside BNP Paribas, Bank

of China International and China International Capital

Corporation as foreign bookrunners, according to a stock

exchange filing.

Already on the deal were Saudi National Bank's investment

banking arm, which is the lead manager as well as global

coordinator alongside Citi, Goldman Sachs ( GS ), HSBC, JPMorgan ( JPM ), Bank

of America ( BAC ) and Morgan Stanley ( MS ). Al Rajhi Capital, Riyad Capital

and Saudi Fransi are also domestic joint bookrunners.

M. Klein and Company and Moelis are independent financial

advisers for the deal.

The deal kicks off as the OPEC+ group of oil producers is

set to meet on Sunday to determine output policy, with some

ministers meeting in Riyadh, according to OPEC+ sources.

The de facto Saudi-led Organization of the Petroleum

Exporting Countries and allies led by Russia, together known as

OPEC+, is currently cutting output by a total of 5.86 million

barrels per day (mbpd), equal to about 5.7% of global demand.

The curbs include a 1 mbpd voluntary cut by Saudia Arabia.

While the moves by OPEC+ have helped support crude prices this

year, Brent settled below $82 a barrel on Friday, down nearly

$10 from a six-month high in April.

Aramco has boosted its dividends, introducing a new

performance-linked payout mechanism last year, despite lower

profits as a result of the lower volumes.

Saudi Arabia will first offer investors 0.64% of Aramco, or

about 1.545 billion shares, at 26.7-29 riyals ($7.12-$7.73),

translating to just under $12 billion at the top end of the

range. A so-called greenshoe option could then be exercised for

roughly 1.7 billion shares to be offered, or 0.7% of Aramco, to

raise over $1 billion more.

Aramco exercised a greenshoe option after its IPO in late

2019, which remains the world's biggest.

About 10% of the new offering, excluding the greenshoe

option, will be reserved for retail investors, subject to

demand.

($1 = 3.7508 riyals)

(Reporting by Yousef Saba; Editing by Emelia Sithole-Matarise)

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