The biggest ever IPO sale of history worth $26.5 billion

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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.