Saudi Arabia’s state oil company Aramco launched its initial stock offering on Thursday, pricing at the high end and raising $25.6 billion, sources told newswire AFP.
This rise raised by the oil company surpasses the $25 billion garnered by the Chinese online trading group Alibaba in 2014.
Aramco is expected to begin trading on December 12 on the Tadawul exchange in Riyadh at 32 riyals, or $8.53, the sources said.
That is on the upper end of the range of 30-32 riyals the company set last month even though major banks advising it called for caution to reduce volatility in the first days of trading.
The IPO has been underwritten mainly by the Saudis themselves, as major foreign investors raised questions about corporate governance, the company’s ability to protect its oil installations and its profit outlook as global climate policies become stricter.
The company is expected to sell 1.5% of its capital during the IPO.
(With Agency Inputs)