Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Saudi Aramco IPO institutional tranche 2.95 times oversubscribed

12/04/2019 | 01:00am EST
FILE PHOTO: Sign of Saudi Aramco's IPO is seen during a news conference by the state oil company in Dhahran

The institutional tranche of Saudi Aramco's planned initial public offering (IPO) has been almost three times oversubscribed, receiving orders worth 189.04 billion riyals ($50.4 billion), financial advisers for the IPO said on Tuesday.

The bookbuilding process for allocating shares to institutional buyers - typically asset managers, insurers or pension funds - began on Nov. 17 and investors have until 1700 Saudi time on Dec. 4 to place orders.

Aramco plans to sell 1.5% of its shares in a deal that could raise up to $25.6 billion.

The state-owned Saudi oil giant has received subscription orders for around 5.9 billion of shares so far from institutions in the first 17 days of the IPO, Samba Capital, NCB Capital and HSBC Saudi Arabia said.

Typically, IPOs in Saudi Arabia tend to be subscribed many times over, although the unprecedented size of Aramco's listing means it is harder to benchmark the level of demand.

The biggest IPO in Saudi Arabia, before Aramco, was for the National Commercial Bank (NCB) in 2013, which sought to raise $6 billion and was oversubscribed many times over.

Aramco has previously said 0.5% of the offering will be allocated to retail investors, leaving 1% - or 2 billion shares - for institutional buyers.

The deal could be the world's biggest IPO if it tops the $25 billion listing of China's Alibaba Group Holding Ltd in 2014.

The lead managers did not provide a breakdown of the institutional investors, but in a separate statement last week Samba Capital said the bulk of orders came from Saudi companies and funds, while foreign investors accounted for just 10.5% of the offers as of Nov. 28.

The retail tranche, which closed on that date, attracted bids worth 47.4 billion riyals, equivalent to around 1.5 times the number of shares offered.

Riyadh scaled back its original IPO plans, scrapping an international roadshow to focus instead on marketing the offering to wealthy Gulf Arab allies. It has stayed quiet on when or where it might list the stock abroad.

The deal is the centerpiece of Crown Prince Mohammed bin Salman's plans to diversify the Saudi economy away from oil.

(This story corrects subscription order for shares in paragraph four to 5.9 billion, not 6.3 billion, after bank clarification)

(Reporting by Marwa Rashad; editing by Lisa Shumaker)


© Reuters 2019
Stocks mentioned in the article
ChangeLast1st jan.
AT HOME GROUP INC. 0.73% 24.93 Delayed Quote.61.25%
HSBC HOLDINGS PLC -1.51% 407.35 Delayed Quote.7.52%
LONDON BRENT OIL -1.92% 55.07 Delayed Quote.8.61%
SAUDI ARABIAN OIL COMPANY 0.00% 34.8 End-of-day quote.-0.57%
THE LEAD CO., INC. -1.44% 820 End-of-day quote.-2.38%
Latest news "Economy & Forex"
07:28aCanada's Trans Mountain pipeline sees fortunes shine after KXL's demise
RE
06:27aKuwait's emir reappoints PM to form new cabinet after parliament standoff
RE
06:18aUAE cabinet approves debt strategy to build local currency bond market
RE
06:06aCENTRAL BANK OF UNITED ARAB EMIRATES : CBUAE conducts cyberattack simulation on banking sector to boost the sector resilience
PU
05:45aBiden Team Promises New Look in Trade Policy
DJ
05:42aVolkswagen looks to claim damages from suppliers over chip shortages -magazine
RE
05:30aGermany urges Taiwan to help ease auto chip shortage
RE
05:28aKuwait emir reappoints prime minister to form new cabinet, KUNA reports
RE
05:08aCENTRAL BANK OF OMAN : CBO presents the Uncut Sheets of the 6th Series...
PU
03:59aMEDIA-BlackRock among 29 fund managers fail 'fee disclosure' test - FT
RE
Latest news "Economy & Forex"