Saudi Aramco IPO's institutional tranche oversubscribed
Retail portion receives a little more than SR10B in orders so far
The institutional tranche of Saudi Aramco's initial public offering has been oversubscribed while the retail portion has received a little more than SR10 billion ($2.67 billion) in orders so far, a banking source told Reuters.
Earlier on Thursday, Saudi-owned news channel Al Arabiya, citing a banking source, said the institutional tranche of the deal had received more than SR64 billion, while the retail portion received SR10 billion.
Aramco, which did not immediately respond to a request for comment, plans to sell 1.5 per cent of the company, or about three billion shares, at an indicative price range of SR30 to SR32, valuing the IPO at as much as SR96 billion and giving the company a potential market value of between $1.6 trillion and $1.7 trillion.
Representatives of the state-owned oil giant plan meetings with investors in Dubai next week, sources have said, for what is expected to be the world's biggest share sale.
Aramco has said at least one-third of the sale is expected to be covered by retail investors, who have until November 28 to sign up for the IPO. Institutional investors can subscribe until December 4.
Aramco kicked off the sale process on November 3. It is crucial for Crown Prince Mohammed bin Salman's plans to raise billions of dollars to invest in non-oil industries, create employment and diversify the kingdom's economy.
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