Saudi Aramco is expected to offer 1.5 percent of its shares in the upcoming initial public offering (IPO) on the Saudi Stock Exchange (Tadawul), the biggest in history, beating the $25 billion raised in Chinese e-commerce giant Alibaba’s 2014 IPO.
The company has set an indicative price range of 30-32 riyals per share ($8-8.53) for its planned which would value the company at $1.6 to $1.7 trillion, according to its new IPO prospectus. The final price for the offering is expected to be announced on December 5.
At this valuation, the company would raise $24-25.5 billion from the IPO, according to Al Arabiya English’s calculations. The high-end would top the record-breaking IPO of Chinese e-commerce giant Alibaba in 2014, which raised $25 billion.
An updated version of the IPO prospectus states that the offering will be open to qualified foreign investors (QFIs) and investors within Saudi Arabia.
The Aramco IPO is expected to see overwhelming investor appetite from retail investors. The company has said it would offer 0.5 percent of shares to retail investors.