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26 November 2019

Saudi Aramco IPO retail subscription reaches SAR 21.8 billion

Saudi Aramco launched the IPO on 3 November 2019 and the oil giant announced plans to sell 1.5 per cent or around three billion shares, at an indicative price range of SAR 30 to 32.

Bloomberg/Simon Dawson

by Kudakwashe Muzoriwa

Samba Capital, one of the lead managers on Saudi Aramco's initial public offering (IPO), said that retail subscription for the state-owned energy company public share sale has reached SAR 21.8 billion ($5.8 billion), reported Reuters.

The lender stated that the retail element of the sale so far amounts to a total of 680 million shares, adding that the last day of subscription for the retail tranche of the share sale is 28 November 2019.

The indicative price values the IPO at as much as SAR 96 billion ($25.6 billion), giving the company a potential market value of between $1.6 trillion and $1.7 trillion.

The company’s future weight in the region’s benchmark indices is said to be a compelling reason for fund managers in the Middle East and North Africa (MENA) region to invest in its shares.

Saudi Aramco’s executives met officials of Abu Dhabi Investment Authority (ADIA) to discuss a potential investment in the oil giant’s share sale that could raise as much as $25.6 billion.

The meeting between Saudi Aramco and the Abu Dhabi state investor was separate from an investor roadshow in Abu Dhabi, the second leg of a Gulf marketing effort by the oil company and its advisors after the Dubai investor meeting.



RELATED STORIES: Abu Dhabi Investment Authority Saudi Aramco IPO





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