Tomorrow, Saudi Aramco IPO for Individual Investors kicks off

Individual investors eyes turn to Saudi Arabia waiting for announcing Saudi Aramco IPO price range tomorrow, which will be the IPO’s launch date for them.

While the official announcement of the offering price of the subscribed shares will be on December 5th.

A brief bulletin issued by Saudi banks said that the period of book building for the launch of “Saudi Aramco IPO” is scheduled to start from Sunday, and will continue until December 4, so individual investors will subscribe based on the highest price range to be announced by then. While, the subscription will expire on the 28th of this month.

Estimates of unofficial price scenarios have indicated several possibilities, including a subscription price of Aramco’s share of SAR37.5, or $10, if the market value of Aramco is calculated at about two trillion dollars.

While expectations for the second possibility point to an offer price of SAR32.8 or $8.7, if the market value reaches at $1.7tn.

The third possibility goes to the share price of SAR28 or $7.5, if the market value is valued at $1.5tn, while the fourth possibility is expected to be at SAR23.4 or $6.2, if the market value of the company reaches $1.25tn.

Finally, the fifth possibility of the price to reach SAR18.7 or $5, if the market value of the company is one trillion dollars.

A prospectus issued by Samba Capital & Investment Management Company, which manages the IPO, said the guidelines for Saudi Aramco IPO indicated that the IPO would be available to individual investors based on a set price, the highest for the price range to be announced as the IPO begins on Sunday. According to the prospectus, the subscription period for the underwriters in the category of companies and institutions will start on the 17th of this month and end on the fourth of next month, while the number of shares of the company is SAR200bn, with a capital of SAR60bn ($16bn), without nominal value.

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