Saudi Aramco to Sell 1.5% of Shares on Local Stock Exchange Starting at $8 per Share
MOSCOW (Sputnik) - The much-anticipated move will make a total of about three billion shares available, making Saudi Aramco's initial public offering worth up to $25.6 billion.
Saudi Arabia's state oil company Saudi Aramco announced on Sunday that it plans to sell 1.5 percent of its company shares on the local Saudi stock exchange, the Tadawul, for the price of $8-$8.5 per share. The final share price will be announced on 5 December.
"The offer stands at 1.5% of all available shares of the company," the materials said. "This corresponds to 3 billion shares of the company. The basic range of the offering price will be 30-32 riyals per share (approximately 8.1-8.6 dollars per share)."
Thus, the basic cost of the entire placement package is about 24.3-25.9 billion dollars, and the market capitalisation of the entire company is 1.6-1.7 trillion dollars.
According to the material, Saudi Arabia lowered the assessment of the total cost of Aramco. When it initially announced plans to conduct a company IPO, Saudi Arabia's Crown Prince Mohammed bin Salman, predicted that the cost of a 5% stake would be $ 100 billion. Accordingly, during the placement, the entire company could have been valued at about $ 2 trillion.
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