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Procedure of Buying ARAMCO shares through online system

 

Under the wider Saudi Vision 2030, Saudi Aramco has opened its 1.5% shares to the public, giving locals a chance to be a direct part of the nation’s economy. And who doesn’t want to be a part of one of the most profitable and giants of the energy sector?

The hype has been created since the announcement made by Prince Mohammad Bin Salman about offering ARAMCO shares to diversify the economy. The name ARAMCO itself is enough to attract investors and locals. But how to buy these shares and earn profit might be a tough question.

We ease your task and help you to be a shareholder by explaining all you need to know about buying shares in the article below.

The first phase of buying Aramco shares

In the first phase from 17th to 28th November 2019, all the individuals (including citizens and Saudi expats) are advised to submit their applications with the due price transaction to be a shareholder of the company. For the institutional investors, the deadlines end at 4th December 2019. Read more: Aramco Decided to open its 3 billion shares for the public costing around $25 Billion

Is everyone eligible to buy shares?

No not everyone is eligible to buy shares. Global investors have to wait initially. Following persons can be a shareholder according to the first phase of IPO:

  • Saudi Arabian nationals, including any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi person
  • Any non-Saudi person (Saudi expat) who is a resident in the Kingdom, Saudi Iqama holder.
  • Any GCC National.

The basic requirement to have Aramco share

The initial requirement to buy the share is to have a bank account in any of the following 13 banks. They are:

  • National Commercial Bank
  • Saudi British Bank
  • Samba Financial Group
  • Al Rajhi Bank
  • Alawwal Bank
  • Alinma Bank
  • Arab National Bank
  • Bank Albilad
  • Bank Aljazira
  • Gulf International Bank
  • Banque Saudi Francis
  • Riyad Bank
  • The Saudi Investment Bank

The all-important book-building period of IPO

The book-building or the offer period is the time duration in which the company will be accepting applications for its 3 million shares. ARAMCO and its advisers will consult with potential investors and look towards bids from the institutions and private investors to decide at what level the shares will finally be sold.

The final price of shares will be different from the initial SR 32/- per share. The final price will be announced on December 5th and the listing will commence on Tadawul afterward.

How to send an application to be a part of the giant oil company?

If you fall onto the criteria and is looking forward to being an ARAMCO shareholder then all you need is to follow the steps as given below:

Steps Details Screenshots
Step-1 Log in to your bank online website.
Step-2 Click on the IPO option at the home page which will open a new page showing available IPO subscriptions.
Step-3 Nowadays only ARAMCO IPO is available on the Saudi Stock Market, click subscribe. 
Step-4
  • A new page will open up where you have to choose the number of shares you are interested to buy. You can buy in the multiples of 10 at a minimum of SR 320/-. 
  • Choose the option in case of a change of final price offering. You can go with the additional shares with the extra amount invested or refund them back. A new page showing all details is shown to confirm your final application.
  • Once reviewed, click on the confirm button and you have sent your application.
Step-5 Download your transaction receipt as a proof of application.

The bonus point attracting investors to IPO

ARAMCO speaks that they will refund money after the deadline for the applications above the 3 million shares as the investors are expected to shoot up. Their policy of refunding changed final pricing or giving additional shares is another edge attracting investors. However the bonus policy which states,

“Saudis who buy and hold the shares for 180 days will receive one bonus share for every 10 shares they buy in the IPO, up to a maximum of 100 bonus shares.”

Thus giving hope to hold on to shares for more profit.

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