Saudi Aramco could face the biggest IPO ever

Oil tanks from Saudi Aramco

The shares of the state-owned Saudi Arabian oil company could be worth up to 25.6 billion dollars in total.

(Photo: Reuters)

Dubai The world's largest oil company Saudi Aramco continues to head for its IPO. The Saudi Arabian group said on Sunday that the price range for the three billion shares – a 1.5 percent share – would be between $ 30 ($ 8) and $ 32 riyal. This could bring the IPO to a volume of up to 96 billion Riyal ($ 25.6 billion).

According to Reuters calculations, this would give a valuation of the company between 1.6 and 1.7 trillion dollars. The Saudi Arabian crown prince had previously targeted a value of $ 2 trillion. However, the group does not want to market its IPO in the US, said two persons familiar with the matter. An opinion was initially not available at Aramco.

Aramco has chances to become the largest IPO of all time. This is so far the debut of the Chinese Internet giant Alibaba, whose IPO (Initial Public Offering) in 2014 had a volume of 25 billion dollars.

Last week, Aramco's 600-page prospectus was released. The share price is to be fixed on 4 December. Saudi Arabian Crown Prince Mohammed bin Salman had already publicized the plans for an initial public offering by Saudi Aramco in 2016, but they were repeatedly postponed. He wants to make his country more independent of oil revenues and to invest proceeds from the stock issue in other industries.

More: The mega-public offering of Saudi Aramco is suspicious. An investment would be associated with great risks, says Handelsblatt editor Robert Landgraf.

Energy (t) Initial Public Offering (t) Oil Company (t) Commodities (t) Saudi Arabia (t) Saudi Aramco (t) Going public (t) Aramco (t) Alibaba (t) Petroleum (t) Oil industry


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