Saudi Arabia Launches World’s Biggest IPO of Aramco at nearly $1.7 trillion

Saudi Aramco IPO for Individual Investors kicks off Tomorrow
Saudi Aramco IPO for Individual Investors kicks off Tomorrow

Saudi Aramco is expected to offer1.5 percent of its shares in the upcoming initial public offering (IPO) on the SaudiStock Exchange (Tadawul),  the biggest in history, beating the $25 billion raised in Chinesee-commerce giant Alibaba's 2014 IPO.

The company has set an indicativeprice range of 30-32 riyals per share ($8-8.53) for its planned which wouldvalue the company at $1.6 to $1.7 trillion, according to its new IPOprospectus. The final price for the offering is expected to be announcedon December 5.

At this valuation, the companywould raise $24-25.5 billion from the IPO, according to Al Arabiya English'scalculations. The high-end would top the record-breaking IPO of Chinesee-commerce giant Alibaba in 2014, which raised $25 billion.

An updated version of theIPO prospectus states that the offering will be open to qualified foreigninvestors (QFIs) and investors within Saudi Arabia.

The Aramco IPO is expected to see overwhelming investor appetitefrom retail investors. The company has said it would offer 0.5 percent ofshares to retail investors.

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