- Valuation under the Saudi Crown Prince is $ 2 trillion
- It could still be the biggest IPO in the world if it topped the price
- Aramco does not plan to sell its domestic IPO source abroad
- The float is at the center of the plan to diversify from oil
Dubai: Saudi Aramco has set a price range for its list, which includes an oil giant worth $ 1.6 trillion to $ 1.7 trillion, under the $ 2 trillion previously targeted by the Saudi crown prince, making it potentially the world's largest IPO.
Aramco announced on Sunday that it plans to sell 1.5% of its shares, or about 3 billion shares, in an indicative price range of 30 rials ($ 8.00) to 32 rials, valuing the initial public offering (IPO) as high as 96 billion rials ($ 25.60 billion) at the upper end of the range.
The price range is below the $ 2 trillion Saudi crown prince previously directed.
- Price Range: 30 rials to 32 rials per share
- The lower end of the range would raise $ 24 billion
- Aramco will announce the final price and thus valuation on December 5th
The sale of shares is expected to be a huge hit among Saudi citizens who are offered 0.5% of the company.
Retail investors have until November 28 to register for the IPO, while institutional investors can subscribe until December 4, with the company managing to launch marketing shows this week.
The bid roadmap will officially begin on Sunday morning with Aramco officials meeting with potential investors at King Abdullah Petroleum Studies and Research Center in northern Riyadh, according to a person familiar with the meeting.
Aramco earned $ 68.2 billion in net income in the first nine months compared to $ 83.1 billion a year ago.
Aramco's net income for the first nine months of 2019
Revenue dropped to $ 217 billion from $ 233 billion.
Aramco could beat the record $ 25 billion raised by Chinese e-commerce giant Alibaba (BABA.N) when it made its debut at the New York Stock Exchange in 2014.
There is no marketing abroad
Aramco is not planning to place its domestic IPO abroad, three people familiar with the matter said, suggesting that international road displays would not take place.
"This will put the burden of the deal on local and regional banks," said one of the three.
"This means that most investors will participate as Qualified Foreign Investors in a Saudi transaction," said another of the people.
Aramco finally launched its IPO on November 3 after a series of false starts. Prince Mohammed, who used the idea for the list four years ago, is trying to raise billions of dollars through a deal to invest in non-oil industries and create employment.
On the one hand, Aramco is the world's most profitable company with a planned dividend of $ 75 billion next year, more than five times the payout of Apple, which is already the largest of any S&P 500 company.