Aramco IPO retail subscription fully covered, $8.69 bln in orders: Samba Capital

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Retail subscriptions for Saudi Aramco’s initial public offering (IPO) have so far reached 32.6 billion riyals ($8.69 billion) by Wednesday evening.

The retail portion of the sale had attracted 3.7 million people by Wednesday night, according to Samba Capital, the lead manager of the IPO, with 1,017,816,380 shares sold, meaning the retail portion of Saudi Aramco’s IPO has been fully covered at 102 percent.

The last day of the retail subscription period is November 28; the IPO began on November 3.

Aramco is offering 1.5 percent of the company’s shares on the Saudi Stock Exchange (Tadawul) at an indicative price range of 30-32 riyals ($8-$8.53). A third of those shares, 0.5 percent, is allocated to retail, or individual investors.

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The higher end of the share price would raise as much as $25.6 billion from the IPO, putting the market value of the oil giant between $1.6 trillion and $1.7 trillion, below the government’s anticipated value of $2 trillion.

Banks in Saudi Arabia have been directed to lend to retail customers at a ratio of 2 to 1 for every riyal invested towards buying Aramco’s shares.

Aramco is expected to announce the final price for the offering on December 5.

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