{"id":86832,"date":"2024-06-04T00:00:00","date_gmt":"2024-06-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/06\/04\/aramco-execs-are-hitting-the-road-to-drum-up-interest-in-oil-giants-secondary-offering\/"},"modified":"2024-06-04T00:00:00","modified_gmt":"2024-06-04T00:00:00","slug":"aramco-execs-are-hitting-the-road-to-drum-up-interest-in-oil-giants-secondary-offering","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/06\/04\/aramco-execs-are-hitting-the-road-to-drum-up-interest-in-oil-giants-secondary-offering\/","title":{"rendered":"Aramco execs are hitting the road to drum up interest in oil giant\u2019s secondary offering"},"content":{"rendered":"

Good morning, wonderful people. <\/strong>We have a nice, compact issue for you this morning with Aramco\u2019s blockbuster share sale and word the PIF wants to raise GBP-denominated debt leading the headlines. <\/p>\n

HAPPENING TODAY-<\/p>\n

#1- \u201cTop executives\u201d from Aramco will be in London and the US for a roadshow <\/strong>to drum up foreign investor interest in the oil giant\u2019s USD 12 bn secondary share sale<\/strong>, Bloomberg<\/a> reports, citing sources it says are familiar with the matter. Aramco CEO Amin Nasser is expected to be at \u201cat least one of the events in London this week\u201d and CFO Ziad Al Murshed will also attend the London leg of the roadshow. A \u201cseparate\u201d roadshow is slated to take place in the US, Bloomberg reports, without providing further information on the exact location or timeline for the US events.<\/p>\n

The sale got off to a strong start earlier this week<\/strong>, with the blockbuster follow-on offering fully covered<\/a> \u201chours\u201d after kicking off<\/a> on Sunday. Both local and foreign investors subscribed to the offering. Aramco had set a price range of SAR 26.70-29.09, meaning the Kingdom\u2019s treasury could see an inflow of as much as SAR 43.5 bn if pricing closes at the top of the range. <\/p>\n

Institutional book-building continues through Thursday<\/strong>, while the three-day subscription period for retail investors began yesterday and closes tomorrow. <\/p>\n

ADVISORS- <\/strong>SNB Capital is lead manager. HSBC, BofA, Citi, Goldman Sachs, JP Morgan, Morgan Stanley, Meryll Lynch, and SNB Capital will act as joint global coordinators, bookrunners and financial advisors. Our friends at EFG Hermes KSA will act as domestic bookrunners alongside Al Rajhi Capital, Riyad Capital, and Saudi Fransi Capital. Meanwhile, M. Klein and Company and Moelis will act as independent financial advisors. Meryll Lynch will act as the stabilization manager. White & Case is legal counsel to Aramco, while PwC is auditor. Receiving agents include, Alinma Bank, Alrajhi Banking and Investment Corporation, Arab National Bank, Banque Saudi Fransi, Riyad Bank, Saudi Awwal Bank, Saudi National Bank. <\/p>\n

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#2- Where do things stand on the Saudi-US defense pact?<\/strong> A \u201chistoric\u201d bilateral agreement between Riyadh and Washington is still in the works as officials continue negotiating the terms, US Ambassador to Saudi Arabia Michael Ratney said in an interview with Arab News<\/a>. The timeline on the pact \u2014 which US Secretary of State Antony Blinken said last month could be \u201cweeks away\u201d<\/a> from finalizing \u2014 remains unclear, with several moving parts, Ratney said. In addition to securing Israel\u2019s OK on a two-state solution with Palestine as a precondition for the agreement, a pact would also need clearance from the US Senate, the ambassador noted. <\/p>\n

REFRESHER-<\/strong> The agreement would see Washington provide security assurances to Riyadh, along with cooperation on the development of a domestic nuclear power industry, as well as on artificial intelligence and other technologies.<\/p>\n

HAPPENING THIS WEEK-<\/p>\n

<\/a> IPO WATCH- Trading of shares in Fakeeh Care Group will begin on Tadawul\u2019s main <\/strong>market tomorrow<\/strong>, according to a Tadawul announcement<\/a>. Shares will be allowed to trade within a \u00b130% band on each of the first three days before being capped at no more than 10% up or down after that before circuit breakers kick in. (All shares on Tadawul are subject to the 10% up-or-down rule.)<\/p>\n

REMEMBER-<\/strong> Fakeeh Care\u2019s IPO drew in strong demand, with the institutional tranche<\/a> of the offering closing 119x oversubscribed, while the retail tranche<\/a> was 14.5x oversubscribed. Abu Dhabi Investment Authority (Adia), the UAE\u2019s largest sovereign wealth fund, and Olayan Saudi Investment are both cornerstone investors in the IPO. The Riyadh-based healthcare provider is taking a 21.5% stake to market<\/a> through an offering of both new and existing shares. The IPO was priced at the top of the range at SAR 57.5 per share, setting it up to be the largest IPO so far this year<\/a> with SAR 2.9 bn in proceeds. <\/p>\n

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Saudi and<\/strong> the UN Environment Program are hosting this year\u2019s <\/strong>World Environment Day<\/a><\/strong> tomorrow<\/strong> with a focus on land restoration, desertification and drought resilience. The event is the largest global platform for environmental outreach gathering people from over 150 countries. You can register for the event here<\/a>.<\/p>\n

The #Growth Summit<\/a><\/strong> is set to kick off tomorrow<\/strong>, bringing together marketing, product and growth experts at the InterContinental in Riyadh. You can request your invite here<\/a>. <\/p>\n

PSAs- <\/p>\n

<\/a> Markets will be closed for Eid week:<\/strong> The Tadawul will be closed to trading after the closing bell on Thursday, 13 June and will reopen on Sunday, 23 June in observance of Eid Al Adha, the exchange said in a post on X<\/a>. <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- More (Nomu) IPOs incoming:<\/strong> The Capital Market Authority (CMA) approved two companies\u2019 plans to IPO yesterday. Both companies \u2014 Almajed for Oud and Tharwah HR \u2014 have yet to release their prospectuses. <\/p>\n