Saudi Aramco’s planned initial public offering (IPO) reaches three times oversubscription as it garnered orders of 189.04 billion riyals ($50.4 billion), financial advisers for the IPO said on Tuesday.
The bookbuilding process for allocating shares to institutional buyers – typically asset managers, insurers or pension funds – began on Nov. 17 and investors have until 1700 Saudi time on Dec. 4 to place orders.
Aramco plans to sell 1.5% of its shares in a deal that could raise up to $25.6 billion. The state-owned Saudi oil giant has received subscription orders for around 5.9 billion of shares so far from institutions in the first 17 days of the IPO, Samba Capital, NCB Capital and HSBC Saudi Arabia said.
Typically, IPOs in Saudi Arabia tend to be subscribed many times over, although the unprecedented size of Aramco’s listing means it is harder to benchmark the level of demand.
The biggest IPO in Saudi Arabia, before Aramco, was for the National Commercial Bank (NCB) in 2013, which sought to raise $6 billion and was oversubscribed many times over.