Riyadh – Mubasher: Saudi Arabian Oil Co, globally known as Saudi Aramco, has revealed the key facts and risks to be considered ahead of its long-anticipated initial public offering (IPO) on the Saudi Stock Exchange (Tadawul).
The institutional book-building period will start on 17 November and end on 4 December, while the retail investor book-building period will run from 17 November to 28 November, according to the company’s prospectus released in the early morning hours of Sunday.
The Saudi oil firm aims to sell up to 0.5% of its shares to individual investors, the prospectus showed.
The main risks that might affect the company’s business, financial position, and share price include terrorism acts such as the attacks on two of its major facilities on 14 September as well as concerns about climate change which might lower oil demand.
“The inability of foreign investors to exchange [Saudi riyal] for other currencies could have a material adverse effect on demand for, and the trading price of, the shares,” the prospectus revealed.
In addition, Saudi Aramco pays dividends to its shareholder, the Saudi government, in US dollars and in case the SAR is no longer pegged to the USD and the value of the SAR were to change, the oil giant may be obligated to spend more cash to finance any dividends and this might adversely affect the company’s financial position.
The prospectus also showed that Saudi Aramco will reveal the final offer price and the final allocations of offer shares to institutional and individual investors on 5 December.
