The long-awaited event is finally here!
The world’s largest company will enter stock exchange with $8,53 per share. It will surpass e-commerce company Alibaba IPO from 2014.
The overall volume of received money from shares subscription based on default price of $8,53 per share could reach the level of $25,6 billion. The highest IPO ever reached was $600 million lower. Saudi Aramco is very likely to be the largest global company having reached the largest IPO.
Company valuation from which the starting exchange rate was counted was $1,7 billion. The amount is almost in the half of the estimated prices from $1,5 to $2 billion which was often talked about. Muhammad bin Salman, Crown Prince of Saudi Arabia, did intend to reach the highest level for a long time. He aims to gain financial resources for innovation of Saudi Arabia economy.
Yet, advisors recommended him to lower the company price not to discourage investors. Due to past high profits which Saudi Aramco achieved, the starting stock exchange rate derived from $2 billion could have been overestimated. Saudi Aramco is expected to enter stock exchange around 12th December. Trading is planned on local market for now only, foreign exchange markets could be later involved as well.
