Saudi Aramco specifies its IPO value

The biggest global company could earn up to $25,6 billion when entering the Stock Exchange.

Saudi Aramco representatives specified the subscription shares value as well as the part that the company will offer to investors.

According to the latest data the value of Saudi Aramco, from which IPO yields will be derived, will be between $1,6 and $1,7 billion. The value is between $300 and $400 million lower than Mohammad bin Salman, the Crown Prince of Saudi Arabia expected.

Yet, even with these conditions Saudi Aramco can still surpass the current stock exchange IPO listing record of Chinese company Alibaba. The Saudi mining company could earn between $24 and $25,6 million when selling 1,5 percent of their shares given these conditions. The overall number or shares should reach $200 billion, as such $3 billion shares are to be sold. The primary emission price is expected to be between $8 and $8,5.

The company intends to offer half percent of shares ($1 billion) to individual investors, therefore to Saudi households. The remaining one percent ($2 billion) can be purchased by institutional investors, including China or Russia. Saudi Aramco should introduce the final subscription share value till 5th December 2019.


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