Exceptional turnout of individuals to subscribe to Aramco IPO, according to Abdullah Al-Hamid, a specialist in wealth and investment management in Saudi Arabia.
Al-Hamid said also that the high demand for Aramco IPO refers to the importance of the company at the local and international level.
Aramco is the world's largest oil producer, a leading company in the production of gas. The demand for gas in the near future to grow by 3.6% annually, and the company is also in the process of acquiring 70% of SABIC, which will strengthen the company's position in terms of petrochemicals, Al-Hamid added.
Al-Hamid continued, "We witness a historic event, the unprecedented IPO," referring that the announced valuation of the IPO is the average range of many international research and expertise houses.
"Aramco deserves a premium for international oil companies for the soundness of its financial position as cash flows are exceptional and their profitability is healthy, compared to similar companies around the world, in addition to low indebtedness," Al-Hamid commented.
Al-Hamid was alsoquoted as saying "Aramco's ability to operate efficiently, reliably andreliably at Aramco may not exist with other similar companies".
Later on Sunday, Saudi Aramco announced the price range for the IPO and the start of the period of book building for the underwriting institutions and individual investors.
While the official announcement of offering price ofthe subscribed shares will be on December 5th, as follows:
Accordingly, Aramco's IPO valuation range is between $1.6-1.7tn.