Daily Management Review

Institutional investors demand for Saudi Aramco IPO reaches $ 50.4B


Demand of institutional investors for participation in the initial public offering (IPO) of the state oil company of Saudi Arabia, Saudi Aramco, reached 189.04 billion Saudi riyals ($ 50.4 billion), Reuters reports citing a statement from the company's financial consultants.

Financial advisers - Samba Capital, NCB Capital and HSBC Saudi Arabia – said that institutional investors had signed up to buy 5.9 billion shares of Saudi Aramco. Collection of applications will last from November 17 to December 4.

Meanwhile, the demand of investors for participation in the IPO Saudi Aramco in November amounted to almost $ 20 billion, including the demand of institutional investors - $ 17.1 billion, individual investors - $ 2.7 billion.

The offering price range for Saudi Aramco is 30-32 riyals per share ($ 8.1-8.6 per share).

Saudi Aramco intends to place 1.5% of its shares under an IPO on the Tadawul exchange in Riyadh for $ 24.3-25.9 billion. The cost of the entire company is $ 1.6-1.7 trillion. The final offering price will be announced on December 5th.

source: reuters.com