Aramco's $ 1710 billion IPO: $ 8.5 per share price

However, oil producer Aramco missed its target of $ 2 billion

Riyadh, November 17, 2019, Sunday

Saudi Arabia today unveiled a $ 1710 billion IPO from energy sector giant Leisure, which may be the world's largest IPO. However, Prince Mohammed bin Salman's initial wish was a $ 2 billion IPO.

The restaurateurs said they would sell 1.5 percent of the company's stock for 24-15.6 billion. However, Saudi Arabia initially announced its intention to sell 5 per cent of the shares. There will be a base offer of 1.5 percent of the company's outstanding stock, ”said the royal family-owned company. The company sought bids from investors for $ 8-8.50 per share.

After a long wait, Prince Mohammed bin Salman's ambitious plan to activate the oil-based economy in various sectors became a rival to the world's largest listing. Alibaba, a Chinese retail giant, put $ 25 billion of IPOs in the market in 2014. Relaxers initially wanted it to be listed on the stock market.

He had plans to list two percent of Tadavul in the Kingdom first and then another three percent in the foreign stock market. That is, the target was dropped for the first time after a lengthy discussion.

The IPO was delayed after being first considered in 2016. Prince Mohammed bin Salman's wish was worth two trillion dollars, but investors and market experts expressed skepticism.

The first impression is that the stock price is understandable and will sell at that price, "said Tariq Fadallah, expert at Nomura Assets Management. Saudi Arabia reverses all barriers to IPO success.

The plan was to diversify the economy of D-Facto (real) king Prince Mohammed bin Salman, not just for oil. He plans to diversify the economy by investing in mega projects and non-oil industries.