Aramco IPO retail tranche oversubscribed, orders reach $10 bn: Lead manager
The retail portion of Saudi Aramco’s initial public offering (IPO) has been oversubscribed, with orders reaching 38.1 billion Saudi riyals ($10.2 billion), lead manager Samba Capital said on Thursday.
The state oil giant plans to sell a 1.5% stake, or about 3 billion shares, and has said at least one-third of the sale is expected to be covered by retail investors, who have until Thursday to sign up.
With an indicative price of 30-32 riyals, the IPO is valued at as much as 96 billion riyals ($25.6 billion) and gives the firm a market value of $1.6-$1.7 trillion.
It will be the world’s biggest IPO if it tops the $25 billion set by China’s Alibaba in 2014.
Around 4.17 million retail investors had subscribed to 1.19 billion shares by 12 p.m. on Thursday, injecting 6.13 billion riyals above the amount needed for full coverage, Samba said.
