Saudi Aramco to buy $1bn of IPO shares as incentive to executives and employees

A worker is seen at Saudi Aramco's oil facility in Abqaiq, Saudi Arabia, on October 12, 2019. (REUTERS/Maxim Shemetov/File Photo)
Updated 17 November 2019

Saudi Aramco to buy $1bn of IPO shares as incentive to executives and employees

  • Aramco said it was also considering introducing an employee stock purchase plan once it becomes a public listed entity

DUBAI: Saudi Aramco will make available $1 billion of shares for employees under a plan to incentivize executives and other staff members alongside the initial public offering (IPO) due to take place next month.

The plan — which was disclosed in the IPO prospectus published late on Saturday night — will involve Aramco buying the shares from the government and making them available for employees under special terms.

Details are still being worked through, but the prospectus talked of a “celebratory grant plan,” implying that at least some of the shares would be given free to some of Aramco’s 73,000 employees.

Such share schemes are not uncommon in privatizations. 

Contributions

The Aramco plan is designed to “provide additional incentives to employees whose contributions are essential to the growth and success of the company, to attract and retain qualified individuals and to further align the interests of such employees with shareholders of the company,” the prospectus said.

The scheme will be in three parts: A long-term incentive plan for executives, a similar plan for management levels, and an incentive scheme for other eligible employees, in addition to the “celebratory grant.”

Aramco said it was also considering introducing an employee stock purchase plan once it becomes a public listed entity.

Publication of the offer prospectus is expected to stimulate interest among Saudi nationals, eligible expats and Gulf Cooperation Council (GCC) citizens for the IPO, expected to be the biggest share offering ever. Some 1 billion shares will be made available to private investors in the IPO, with as much as 2 percent being sold to global investors.

High net worth individuals interested in buying large chunks of shares may be included in the institutional offering if there is a lot of private investor demand.

The final proportion to be sold will be determined by the strength of global demand for the stock. There is also the possibility that the government could sell a big tranche of shares to a strategic foreign investor — like a big energy trade partner or a sovereign wealth fund.

The 658-page prospectus contains detailed financial and commercial information on Aramco and will be studied closely by investors interested in the shares.

 


Abdullah bin Mufreh Al-Dhayabi, president of Tabuk University

Updated 11 December 2019

Abdullah bin Mufreh Al-Dhayabi, president of Tabuk University

  • Al-Dhayabi began his academic career as a lecturer at KAU
  • Al-Dhayabi is a member of the higher committees for female colleges in the Kingdom

RIYADH: Dr. Abdullah bin Mufreh Al-Dhayabi has been the president of Tabuk University since October 2017.

Prior to that, he was the deputy head of educational affairs at King Abdul Aziz University (KAU) in Jeddah, where he served in the position for one year. 

He has also been the chairman of the promotion and job competition committee, as well as the safety committee, at Tabuk University since November 2012. 

Al-Dhayabi began his academic career as a lecturer at KAU, where he received his bachelor’s degree in mathematics from the College of Science. 

He later traveled abroad to pursue his higher education, earning his master’s degree in mathematics from the University of Missouri, US. He obtained his doctorate from the University of Birmingham, UK.

After that, he returned to the Kingdom and joined KAU as an assistant professor. He remained in that position from 2005 to 2010, then served as an associate professor between 2010 and 2014.

Al-Dhayabi is a member of the higher committees for female colleges in the Kingdom and the community colleges higher committee at the Ministry of Higher Education.

He congratulated King Salman on the release of the government’s annual budget for 2020.

“Approximately one-fifth of the budget is allocated to education, which reflects the leadership’s keenness to invest in the human element through education and training ... to open new horizons and job opportunities for Saudi youth and encourage them to invest in the diverse resources in the Kingdom,” Al-Dhayabi said.