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Aramco's IPO Underwriting Totals 119% by Mid-Thursday

Aramco's IPO Underwriting Totals 119% by Mid-Thursday

Friday, 29 November, 2019 - 08:15
Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov/File Photo
Riyadh - Asharq Al-Awsat

A total of 400,000 investors have subscribed to Aramco’s IPO mid- Thursday. The individuals’ purchased shares reached 119 percent of the allocated share of 0.5 percent of the company's capital, which equals SAR32 billion (USD8.5 billion)

The retail portion of Aramco’s initial public offering (IPO) has been oversubscribed, with orders reaching SAR38.1 billion (USD10.1 billion), lead manager Samba Capital said on Thursday. Around 4.17 million retail investors had subscribed to 1.19 billion shares by 12 p.m. on Thursday.

In the past three days, the state oil giant sold a 1.5 percent stake, which means that every hour 20,008 new shareholders were subscribing to Aramco.

Dec 5th will witness the announcement of the final issue price in addition to the allocations for retail and institutions in which Aramco said earlier that the 22nd of the same month would witness the return of surplus to subscribers.

With an indicative price of SAR32, the IPO is valued at as much as SAR96 billion (USD25.6 billion) and gives the firm a market value of USD1.6-USD1.7 trillion.

Rania Nashar, Vice Chairman of Samba Capital, stressed that the turnout and high participation of individuals came as expected and went in tandem with the biggest subscription in history for the biggest oil company in the world.

As the individuals’ subscription duration ends, lights are shed in the next days on the institutions that still have till the 4th of December to take the decision to invest in Aramco shares.

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