Aramco Said to Explore Incentives to Reward Loyal IPO Buyers

Saudi Aramco is exploring ways to reward loyal investors in its initial public offering to ensure the record share sale isn’t followed by a wave of selling, people with knowledge of the matter said.

One potential measure that Aramco has discussed with Saudi regulators is whether it could offer bonus shares to retail stock buyers who keep their holdings for six months, one of the people said. Aramco is looking to reduce market volatility after it begins trading as well as provide a benefit to mom-and-pop buyers who expect a windfall from local listings, the people said, asking not to be identified because the information is private.