Riyadh – Mubasher: Sovereign wealth funds in Abu Dhabi and Kuwait are reportedly planning to invest in the initial public offering (IPO) of the Saudi Arabian Oil Company (Saudi Aramco).
Reuters reported that the Abu Dhabi Investment Authority (ADIA) is considering an investment of at least $1 billion, and cited other sources estimating the investment at $1.5-2 billion.
Meanwhile, the Kuwait Investment Authority (KIA) is reportedly also planning an investment in the IPO, according to the news agency.
The IPO’s lead manager, Samba Capital recently revealed that the number of subscribers in the offering reached 2.63 million, with a retail subscription value of SAR 21.77 billion and a total number of 680.25 million subscribed shares, by the end of 25 November.
It is worth noting that the last day of subscription for the retail tranche is 28 November and 4 December for institutions.
The offering, which will see Aramco being listed on the Saudi Stock Exchange (Tadawul), represents about 1.5% of the company’s capital, valued at SAR 60 billion and distributed over 200 billion shares.
The process began on 17 November with a price range set between SAR 30 and SAR 32 ($8-8.5).
The IPO has been limited to investors in Saudi Arabia and the Gulf Cooperation Council (GCC) member countries, and amendments to the IPO guidelines excluded foreign financial institutions from directly participating in the order book.
