Saudi investors to receive bonus shares

Aramco said the Saudi market regulator, which approved its application to list yesterday, had issued an exemption for non-resident institutional foreign investors to subscribe. Saudi investors would be eligible to receive bonus shares -a maximum of 100 bonus shares for every 10 allotted shares.

Saudi nationals would be eligible to receive bonus shares. It said the government will forgo its right to receive a portion of cash dividends on Aramco’s shares, giving priority on such distribution to new shareholders. Aramco is cutting the royalties it pays to the Saudi government - to give comfort to investors. Aramco said that, effective Jan.

1 2020, it will adopt a progressive royalty scheme, with a marginal rate set at 15pc up to $70 per barrel, 45pc between $70 and $100, and 80pc if the price rises higher. The listing announcement had been expected on Oct. 20 but was delayed after advisers said they needed more time to lock in cornerstone investors, three sources said.