The oil giant Suadi Aramco recently recorded one of the biggest IPO in history, and the company has managed to raise more than $44 billion of initial capital. According to reports from IPO managers, the company has managed to raise 166 billion Saudi riyals from all other investors except institutional ones who still have one more week to invest in the company. This IPO has surpassed the expectations of the IPO managers and became one of the biggest IPO in the history of the stock market.
Saudi Arabia already said that they are going to offer 1.5 percent of the total stake to the public, out of which .5 percent will be for retail investors. Even with such a small percentage of listing, Saudi Aramco has managed to grab more than 44 billion dollars of investment. Foreign investors who usually have to undergo lots of processes before investing have found to be financed in Saudi Aramco by this IPO.
The price range for Saudi Aramco has been set in between 30-32 Saudi riyals, and the kingdom is trying to raise $25 billion of funding by issuing a 1.5 percent stake to investors. When reports came that the bids for the company’s IPO might not surpass their expectations, during last week, unexpected things happened. The oil giant company managed to raise more than 44 billion dollars of funding. The kingdom has already made sure banks are giving loans to the general public in shallow interest so that they can buy shares of the company. The retail investment ended yesterday, but institutional investors still can purchase shares up to next week. As of now, foreign investors are not inclined to buy shares of Saudi Aramco, and that’s why the kingdom is trying to free up legal restrictions on such investors.