Aramco’s IPO Retail Portion Fully Covered with Orders Reaching $8.7 Billion
Business
Riyadh - Asharq Al-Awsat
The retail portion of Saudi Aramco’s initial public offering (IPO) has been fully covered a day before the closure of the retail offering on Nov. 28. Orders have reached 32.57 billion Saudi riyals ($8.7 billion), lead manager Samba Capital said in a statement on Wednesday. Aramco plans to sell 1.5 percent of the company, or about 3 billion shares, at an indicative price range of 30 riyals to 32 riyals, valuing the IPO at as much as 96 billion riyals ($25.6 billion) and giving the company a market value of between $1.6 trillion and $1.7 trillion. Around 3.72 million retail investors had subscribed to 1.017 billion shares by 20:00 (1700 GMT) on Nov. 27, the statement said. Rania Nashar, Vice Chairman of Samba Capital, said that the increase in the number of subscribers to the IPO came to underline the confidence in the company’s investment feasibility and promising investment prospects, as well as the belief of the investor community and individuals in the economic and strategic approach adopted by the Kingdom. This comes amid reports about the desire of Gulf neighbors to invest in Aramco’s IPO. The offering to institutional investors, expected to raise about two thirds of the offering, closes on Dec 4. Reuters reported on Wednesday that talks were underway between Aramco officials on investing with Kuwait and Abu Dhabi. Abu Dhabi Investment Authority (ADIA) was considering investing at least $1 billion, five sources told Reuters, while one of the sources said a final decision on the amount still required board approval. The agency quoted two of the sources as saying that Kuwait Investment Authority (KIA) also planned to invest in the IPO, although the size of Kuwaiti commitment was not immediately clear.
from Asharq AL-awsat https://aawsat.com/english/home/article/2011861/aramco%E2%80%99s-ipo-retail-portion-fully-covered-orders-reaching-87-billion
No comments:
Post a Comment