Saudi Aramco to be valued at $1.7 trillion after the world’s biggest IPO
November 18, 2019 | Investopaper
Saudi Aramco, the oil giant of Saudi Arabia, is expected to be valued up to 1.7 trillion dollars. As per the press statement on Sunday, Saudi Aramco is planning to sell almost 3 billion shares i.e. 1.5 percent of the company in the IPO next month.
The IPO of Saudi Aramco is expected to raise 25.60 billion dollars. If that happens, it might overtake the 25 billion dollars record of Alibaba IPO in 2014. The price range of Initial Public Offering (IPO) would value the company’s worth up to 1.7 trillion dollars.
The state-owned Oil giant has repeatedly delayed the IPO, mainly due to the complexity of its corporate structure. Initially, it was scheduled to sell the shares in 2018. The aim behind the IPO is to raise the cash for the government in order to reduce the budget deficit. The Saudi government has plans to diversify its economy beyond oil since it is heavily reliant on oil exports.
