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Saudi Aramco's IPO retail tranche oversubscribed

Filed on November 28, 2019

(Reuters)

The retail portion of Saudi Aramco's initial public offering has been oversubscribed, with orders reaching SR38.1 billion ($10.2 billion), lead manager Samba Capital said on Thursday.

The state oil giant plans to sell a 1.5 per cent stake, or about three billion shares, and has said at least one-third of the sale is expected to be covered by retail investors, who had until Thursday to sign up.

With an indicative price of SR30-32, the IPO is valued at as much as SR96 billion ($25.6 billion) and gives the firm a market value of $1.6-$1.7 trillion.

It will be the world's biggest IPO if it tops the $25 billion set by China's Alibaba in 2014.

Around 4.17 million retail investors had subscribed to 1.19 billion shares by 12pm on Thursday, injecting SR6.13 billion above the amount needed for full coverage, Samba said.

Subscription continued until midnight on Thursday and final results will be announced today, it said in a statement.

The IPO is the centrepiece of Crown Prince Mohammed bin Salman's plans to diversify the Saudi economy away from its reliance on oil.

Aramco is the crown jewel of the economy and the world's most profitable company. Sources told Reuters this week that the sovereign wealth funds of Abu Dhabi and Kuwait plan to invest.

Saudis have been eager to buy shares. The government has encouraged Saudis to invest.

- Reuters


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