Biggest IPO ever: Saudi state oil company worth 1,500 billion
Saudi state oil company Saudi Aramco is going to value its shares at 30 to 32 royal each (8.00 to 8.53 dollars). The oil giant reports this in an update of the prospectus. The total value of Aramco thus comes over 1.5 trillion dollars, well below the 1.8 trillion that Crown Prince Mohammed bin Salman foresaw. A trillion is a 1 with 12 zeros, or a thousand billion.
The group brings a 1.5 percent interest on the stock exchange in the Saudi capital Riyadh. It is the world’s largest IPO ever. If the shares are sold at the top price, Aramco earns more than the current record holder, trading platform Ali Baba, on his 2014 debut in New York.
Interested parties can register from today for buying Saudi Aramco shares. That registration runs until December 4. The final price for a share will be announced a day later.
The income from the IPO goes to a new investment fund. With this, crown prince Mohammed bin Salman wants to make the country less dependent on oil exports in 2030. Until then, the marketers of the company go on the road in a ‘road show’, to interest parties in buying shares. For the time being Saudi Aramco has no plans to go public in other countries.
Saudi Aramco is the largest oil producer in the world and is also known as the most profitable company in the world. Last year it made almost 100 billion dollars in profit.
