Aramco declares USD 1.71 trillion valuation in blockbuster IPO
Saudi Arabia on Sunday put a value of up to USD 1.71 trillion on energy giant Aramco in what could be the world’s biggest IPO, but missed Crown Prince Mohammed bin Salman’s initial target of USD 2 trillion.
Aramco said it would sell 1.5 percent of the company in a blockbuster initial public offering worth USD 24-25.6 billion, scaling down Saudi Arabia’s initial plan to sell up to five percent of the firm.
“The base offer size will be 1.5 percent of the company’s outstanding shares,” the state-owned energy giant said as it began taking bids from investors in a price range of 30-32 Saudi riyals per share (USD 8-8.5).
The much-delayed offering, a cornerstone of Prince Mohammed’s ambitious plan to diversify the oil-reliant economy, rivals the world’s biggest listing — the USD 25 billion float of Chinese retail giant Alibaba in 2014.
