The biggest ever IPO sale of history worth $26.5 billion
DUBAI/RIYADH: The biggest ever IPO sale of history worth $26.5 billion made by State-owned oil giant Saudi Aramco.
Aramco initial public offering (IPO) will be the biggest in history, but will still fall significantly short of the towering $2 trillion valuation long sought by Crown Prince Mohammed bin Salman.
Aramco priced its IPO at 32 riyals ($8.53) per share, the top of its indicative range, according to three sources familiar with the decision, raising $25.6 billion and beating Alibaba’s record $25 billion listing in 2014.
At that level, Aramco has a market valuation of $1.7 trillion, comfortably overtaking Apple as the world’s most valuable listed firm. But the listing, expected later this month on the Riyadh stock exchange, is a far cry from the blockbuster debut originally envisaged by the Crown Prince.
Saudi Arabia relied on domestic and regional investors to sell a 1.5pc stake after lukewarm interest from abroad, even at the reduced valuation of $1.7 trillion.
Sources told Reuters earlier that Aramco may also exercise a 15pc “greenshoe” option, allowing it to increase the size of the deal to a maximum of $29.4 billion.
Aramco has declined to comment on the IPO pricing. A formal announcement is expected later on Thursday, the sources said.