RABIGH, 5 January 2008 — Petro Rabigh, a joint venture between Saudi Aramco and Sumitomo Chemical of Japan, stated yesterday that its eagerly awaited SR4.599 billion initial public offering (IPO) would open for subscription today. This landmark IPO, which is open to Saudi individuals and institutional investors, will close on Jan. 12.
The offering consists of 219 million shares, representing 25 percent of the company’s share capital after the IPO.
Based on the institutional book-building process, the share price has been determined at SR21, representing SR10 par value and SR11 premium. The minimum subscription is 10 shares and the maximum is 1 million shares.
HSBC Saudi Arabia Limited, the Financial adviser and lead manager for the IPO, reserves the right to reduce the institutional allocation from 50 percent to 25 percent in the event that retail demand is sufficient and upon approval of the Saudi Capital Market Authority (CMA).
The allocation to retail subscribers will be performed in two stages. In the first stage, each subscriber will receive a minimum of 10 shares. During the second stage, and in the event there is a sufficient demand by retail subscribers, each subscriber for 50 shares or less will receive the full allocation of what he applied for, provided that total shares allocated do not exceed total shares offered to retail subscribers (162,464,286 shares). The balance of the offer shares (if available) will be allocated on a pro-rata basis. A maximum of SR37.5 million worth of shares will be allocated to Petro Rabigh employees.
