Dubai – Masaader News
Saudi Aramco share sale was the biggest to date with $25.6bn, surpassing that of China’s Alibaba which raised $25bn in 2014 in New York, according to BBC.
Saudi Aramco sold 3 billion shares at 32 riyals ($8.53) each in its IPO, the company said Thursday.
Aramco relied on domestic and regional investors to sell a 1.5% stake after lukewarm interest from abroad.
The IPO will value it at $1.7tn when trading begins – short of its $2tn target, but making it the most valuable listed company in the world.
Saudi Arabia urgently needs tens of billions of dollars to fund megaprojects and develop new industries.
Saudi Aramco said last month that it was aiming to sell about 1.5% of its 200 billion shares. The size of the deal could yet rise to $29.4 billion, if an option to sell more shares is exercised.
The massive stock exchange debut would fund Crown Prince Mohammed bin Salman’s Vision 2030 plan to wean the kingdom off oil and develop other sectors of its economy, while signaling to multinational companies and foreign investors that Saudi Arabia was open for business.