Saudi Aramco shares surge 10% on Tadawul stock market debut
Share price lifts to $9.39 (SAR35.2) raising Aramco’s valuation to $1.88tn, making it the world's largest listed company
The world’s largest initial public offering (IPO), Saudi Aramco, has become the largest listed company in the world, with its shares surging 10% above its IPO price of $8.53 (SAR32) to $9.39 (SAR35.2) on the Saudi Arabia’s bourse – Tadawul – raising its valuation to $1.88tn (SAR7tn).
Construction Week reported earlier this month that the world’s largest oil producer Saudi Aramco had raised $25.6bn (SAR96bn), with a final offering price of $8.53 (SAR32) on 3bn shares – or 1.5% of the firm’s share capital.
The most profitable firm in the world announced the end of the IPO's book-building period on 5 December, confirming total bids of $119bn (AED446bn) – or 465% of the total offer shares.
According to the firm, the offer shares allocated to individual investors comprised 33.3% of the offer shares – equivalent to 0.5% of the company’s outstanding share capital – while the offer shares allocated to institutional subscribers comprised 66.7% of the offer shares – equivalent to 1% of the company’s outstanding share capital.
The oil giant is now quite close to the $2tn (SAR7.5tn) valuation, which the Saudi Crown Prince, Deputy Prime Minister, and Minister of Defense, HRH Mohammed bin Salman, projected in 2016.