The retail share of Saudi Aramco’s initial public offering (IPO) has been fully subscribed to, with orders reaching 32.57 billion Saudi riyals ($8.7 billion), lead manager Samba Capital said.
Around 3.72 million retail investors had subscribed to 1.017 billion shares by end of on Nov. 27, a statement from the broker said. Aramco plans a listing on Saudi stock exchange at an undisclosed date.
The energy giant plans to sell 1.5 per cent of the company, or about 3 billion shares, at an indicative price range of 30 riyals to 32 riyals, valuing the IPO at as much as 96 billion riyals ($25.6 billion) and giving the company a market value of between $1.6 trillion and $1.7 trillion.
This falls short of the $2 trillion target initially sought by Crown Prince Mohammed bin Salman, who has made the IPO the cornerstone of his plans to diversify Saudi economy. .
Aramco, which kicked off the sale process on Nov. 3, said at least one-third of the sale is expected to be covered by retail investors, who have until Nov. 28 to sign up. The institutional offering closes on Dec 4.