Saudi Aramco plans $25.6B share sale in biggest ever IPO
Thursday, 5 December 2019 DUBAI, United Arab Emirates (AP) — Saudi Arabian state-owned oil company Aramco says it will sell its shares at 32 riyals ($8.53) each, laying the groundwork for a $25.6 billion IPO, the biggest ever.
The figure released Thursday means Aramco would be valued at $1.7 trillion, more than both Microsoft and Apple.
The record holder for the biggest IPO is Chinese conglomerate and e-commerce company Alibaba Group Holding Ltd., which raised $25 billion in its first few days of trading in 2014. In comparison, Facebook raised $16 billion in its 2012 IPO.
Aramco is selling a 1.5% stake in the company, or what is 3 billion shares. The company is selling 0.5% to individual investors, who are Saudi citizens and residents of Saudi Arabia, and 1% to institutional investors.
State-owned oil giant Saudi Aramco's IPO will be the biggest in history but concerns about corporate governance and nation's role in Middle East politics may have limited international interest. Conway G. Gittens has the details.