International

Saudi Aramco declares $1.71 tn valuation in IPO

more-in

It would 1.5% stake to raise $25.6 billion

Saudi Arabia on Sunday put a value of up to $1.71 trillion on energy giant Aramco in what could be the world’s biggest IPO, but missed Crown Prince Mohammed bin Salman’s initial target of $2 trillion.

Aramco said it would sell 1.5% of the firm in a blockbuster initial public offering worth at least $24 billion.

“The base offer size will be 1.5 percent of the company's outstanding shares,” the state-owned energy giant said in a statement that set the price range at 30-32 Saudi riyals per share ($8-8.5).

The much-delayed offering is scaled down from original plans, but it still rivals the world's biggest listing so far — the $25 billion float of Chinese retail giant Alibaba in 2014.

Aramco had initially been expected to sell a total of 5% on two exchanges. But the firm has said there are no current plans for an international stock sale, indicating that the long-discussed goal had been shelved for the time being.

Why you should pay for quality journalism - Click to know more

Related Topics International
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Dec 6, 2019 9:36:22 PM | https://www.thehindu.com/news/international/saudi-aramco-declares-171-tn-valuation-in-ipo/article29999799.ece

Next Story