Aramco’s IPO raises 50.4 billion by the end of IPO’s day 17

Aramco’s IPO raises 50.4 billion by the end of IPO’s day 17

Saudi Aramco's planned initial public offering (IPO) reachesthree times oversubscription as it garnered orders of 189.04 billion riyals($50.4 billion), financial advisers for the IPO said on Tuesday.

The bookbuilding process for allocating shares toinstitutional buyers – typically asset managers, insurers or pension funds –began on Nov. 17 and investors have until 1700 Saudi time on Dec. 4 to placeorders.

Aramco plans to sell 1.5% of its shares in a dealthat could raise up to $25.6 billion. The state-owned Saudi oil giant hasreceived subscription orders for around 5.9 billion of shares so far frominstitutions in the first 17 days of the IPO, Samba Capital, NCB Capital andHSBC Saudi Arabia said.

Typically, IPOs in Saudi Arabia tend to be subscribed manytimes over, although the unprecedented size of Aramco's listing means it isharder to benchmark the level of demand.

The biggest IPO in Saudi Arabia, before Aramco, was for theNational Commercial Bank (NCB) in 2013, which sought to raise $6 billion andwas oversubscribed many times over.

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