Dubai: Saudi Aramco has set a price range for its listings which implies the oil giant is worth between $ 1.6 trillion to $ 1.7 trillion, below the $ 2 trillion previously targeted by the Saudi crown prince, making it potentially the world's biggest IPO.
Aramco said on Sunday that it plans to sell 1.5% of its shares, or around 3 billion shares, at an indicative price range of 30 riyals ($ 8.00) to 32 riyals, appreciating an initial public offering (IPO), as much as 96 billion riyals ( $ 25.60 billion) at the top end of the range.
The price range is under $ 2 trillion which was previously targeted by the Saudi crown prince.
- Price range: 30 riyals to 32 riyals per share
- Prices in the lower range will increase by $ 24 billion
- Aramco will publish the final price and thus the valuation on December 5
The roadshow for this offer will officially begin on Sunday morning with Aramco officials meeting with potential investors at the King Abdullah Oil Research and Research Center in northern Riyadh, according to someone who is knowledgeable about the meeting.
Aramco earned a net profit of $ 68.2 billion in the first nine months compared to $ 83.1 billion a year ago.
Aramco's net profit in the first nine months of 2019
Revenue dropped to $ 217 billion from $ 233 billion.
Aramco only beat the $ 25 billion record set by Chinese e-commerce giant Alibaba (BABA.N) when it made its stock market debut in New York in 2014.