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Saudi Aramco valuation of $1.7 trillion set for a record IPO

Nov 18, 2019
2 min read
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Saudi Aramco revealed the share price range for its initial public offering that values the energy giant at US$1.6-1.7 trillion, setting up the groundwork for what could be the largest ever listing.

The share price for the base offer for 1.5 per cent of the company has been set between 30-32 riyals (8-8.53) and the final price will be determined at the end of the book building period, Saudi Aramco said in a statement.

The period will end on Dec. 4 and the final price will be announced on Dec. 5, Aramco said.  

The oil giant said it plans to sell about 3 billion shares and the given price range, the IPO can be valued at as much as 96 billion riyals ($25.6 billion), giving the company a potential market value of between $1.6 trillion and $1.7 trillion.

This could come close to surpasses the record $25 billion listing of Chinese e-commerce giant Alibaba in 2014.

The listing, on Saudi Stock Exchange, will be limited to Saudi nationals or pre-qualified foreign institutional investors. The retail investors will be allowed to subscribe for 0.5 per cent of the base offer, while the rest will be reserved for institutions.

Additionally, Aramco’s IPO size could be bigger if there is enough demand for it to use an over-allotment option.

Aramco has yet to name any cornerstone investors in the deal or formally disclose the listing date.

Comfortably being the world’s most profitable company, Aramco plans to give our $75 billion in dividend next year.

 

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