Saudi Aramco’s price fell short of the $2 trillion Saudi Arabia’s crown prince asked for and is worth up to $1.7 trillion, according to the oil giant which set the new price. Still, Aramco is running to become the largest IPO globally.
According to Reuters, Aramco cannot sell its shares directly to investors in the United States and other markets, as the initial public offering (IPO) will be restricted to Saudis and those foreign institutions permitted to invest in the kingdom’s stock market.
The oil giant said it plans to sell 1.5% of the company, or about 3 billion shares, at an indicative price range of 30 riyals to 32 riyals, valuing the IPO at as much as 96 billion riyals ($25.6 billion) and giving the company a potential market value of between $1.6 trillion and $1.7 trillion.
This could just beat Chinese e-commerce giant Alibaba’s record $25 billion New York stock market debut in 2014.
Aramco’s IPO size could be bigger if there is enough demand for it to use a 15% “greenshoe” over-allotment option.
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