Saudi Aramco Makes History with $25.6 Billion IPO

Saudi Aramco expects to raise $25.6 billion from its initial public offering (IPO), making it the world’s largest recorded IPO to date.

The IPO gives the company a market value of $1.7 trillion, beating Apple’s $1.16 trillion and Alibaba Group’s previous world record IPO of $25 billion in 2014.

One of the driving forces behind listing the state-owned oil company is the need for Saudi Arabia to move beyond oil, which accounts for nearly 70% of government revenue. The company is expected to sell 3 billion shares for a 1.5% stake at 32 Saudi riyals ($8.53) each.

Aramco’s market value will be higher than that of the top five Western oil companies—ExxonMobil, Royal Dutch Shell, Chevron, Total and BP—combined.

The record-breaking stock exchange listing will fund H.E. Prince Mohammed bin Salman’s Vision 2030 plan to develop non-oil sectors within Saudi Arabia’s economy, while inviting multinational companies and foreign investors to Saudi Arabia.


Share on facebook
Share on twitter
Share on linkedin

Latest Posts

Subscribe For Updates

Sign up for latest news and event info

Copyright © 2021 Africa Oil & Power. Privacy Policy · Terms of Use