DUBAI – Oil giant Saudi Aramco has received subscriptions from institutional asset managers worth over $38.7 billion during the first 15 days of the institutional tranche of its initial public offering (IPO).
The institutional offering began on 17 November and prospective investors have until 4 December to place orders.
The world’s largest oil company began the IPO for individuals and institutional clients on 17 November intending to offer 1.5 percent of the company’s shares.
On 28 November, the Saudi state-owned company closed its subscription process of shares for individuals with a $12.6 billion sale, just over 0.5 percent of the company’s shares.
Executive directors are marketing the IPO in the Gulf Cooperation Council (GCC), in the United Arab Emirates, Kuwait and other neighboring countries.
The IPO is the largest in history and with it, the oil company seeks to raise $25.6 billion.
According to Aramco, the initial reference price of each share is in a bracket worth between 30 and 32 rials (from $8 to $8.5) and a final price will be announced by 12 December.
On Monday, Riyadh’s stock market, Tadawul, announced an equity index cap of 15 percent to prevent large companies such as Aramco from distorting the market when it lists on the exchange.
According to the executive director of Tadawul, Khaled Abdullah Al Hussan, the measures “will guarantee more balanced indices” and will serve to improve transparency, while minimizing the dominance of the values over indices.