Currently, Saudi Aramco became the world’s largest IPO by raising $25.6 billion by Initial Public Offering. They are the leader and planning to reshape the nation by oil richness. They have also confirmed the final price of their share by 32 riyals, which is roughly converted into $8.53. They are now the world’s most profitable company due to their valuation of $1.7 trillion.
They have also received bidding of $119 billion in total and had very high grey market price. This particular cell can help them restore their credibility and have their own global reputation which was destroyed due to the model of Washington Post columnist Jamal Khashoggi. The reputation was also tarnished due to the war in Yemen, this could be a great relief for the Crown Prince Mohammed Bin Salman.
Previously the deal was not successful ones it was first introduced in the year of 2016 in order to raise $100 billion. They were offering 1.5% of share along with the local listing in order to have the company valuation of $2 trillion. but they completely became dependent on local investors and also from the funding which came from their neighboring gulf Arabic monarchies.
More than 5 million people applied for their shares which were closed on Wednesday. The total attracted bids were calculated to be 397 billion riyals. Even the richest families who are running Riyadh’s Ritz-Carlton hotel were also having a good amount of contribution. Previously they were caught in the corruption case in the year 2017, it is one of the biggest contributions they have done in this company.
After Saudi Aramco start trading, they will become the most valuable company in the world by overtaking Microsoft Corp. & Apple Inc. This is also confirmed that the company will also have shareholders other than the Saudi government for the first time since 1970.