Briefing

Saudi Aramco IPO raises record-setting US$25.6 billion, but falls short of original goal

article-aa

The valuation assigned to the kingdom’s national oil company is the largest ever, and more than the value of the five largest oil companies in the world combined. (Financial Times)

Read this article for free

By entering your e-mail you consent to receiving commercial electronic messages from The Logic Inc. containing news, updates, offers or promotions about The Logic Inc.’s products and services. You can withdraw your consent at anytime. Please refer to our privacy policy or contact us for more details.

Already a subscriber?

Talking point: Despite the record, the debut is a pared-down version of the kingdom’s original ambitions. Since Crown Prince Mohammad bin Salman first shared plans for Aramco’s listing in 2015, Saudi Arabia had been aiming to raise US$100 billion on a valuation of US$2 trillion. The listing comes as the Organization of the Petroleum Exporting Countries agreed to deepen their oil supply cut by two per cent until March, a move Saudi Arabia had been pushing for to boost oil prices to support the IPO. The kingdom had ended up raising mainly from local investors amid tepid demand internationally, due to its lofty valuation goals. The previous biggest listing was Alibaba’s—the Chinese e-commerce marketplace raised US$25 billion on the New York Stock Exchange in 2014.