World biggest IPO raises $25.6 Billion

Teller · 1 World biggest IPO raises $25.6 Billion Fri Dec 06, 2019 3:05 pm

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Saudi Arabia's state oil company Aramco launched its initial stock offering on Thursday, pricing at the high end of the target range and raising $25.6 billion, two sources told AFP.

Aramco shares will sell on the Riyadh stock exchange at a starting prices of SR32, putting the value of the company at $1.7 trillion, the sources said, making it the biggest company ever. Aramco only sells 1.5% balance 98.5% keep by government.

Teller · 2 Re: World biggest IPO raises $25.6 Billion Fri Dec 06, 2019 3:14 pm

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https://www.ft.com/content/67e3fbd6-1775-11ea-8d73-6303645ac406

kasun_gimhana · 3 Re: World biggest IPO raises $25.6 Billion Fri Dec 06, 2019 3:45 pm

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OMG, it is more than Apple. How could it be ??????

ipo · 4 Re: World biggest IPO raises $25.6 Billion Fri Dec 06, 2019 3:45 pm

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A survey of international asset managers—combined, they hold $3.8 trillion of assets under management—found that the shares in Saudi Aramco being sold by the Saudi government are over-valued by up to one-third. Just as troubling is that just 13% of those same asset managers would buy shares at the current price range set by the world’s biggest oil producer.
https://fortune.com/2019/12/02/saudi-aramco-ipo-overvalued-fund-managers-calculate/

And for Saudis the bank did provide big loans up to 6 months salary to subscribe for the IPO. And according to the stats only 6.5% was taken by the international Investors . So the IPO still didn't provide the boost they they expected. Still TDWL didn't announce the first trading date.

Considering all these factors even though its the biggest IPO in the history its far behind the expectations. Shocked

ipo · 5 Re: World biggest IPO raises $25.6 Billion Fri Dec 06, 2019 6:40 pm

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The Saudi Stock Exchange (Tadawul) announces that the listing and trading of the Saudi Arabian Oil Company (Saudi Aramco) will start on Wednesday 11/12/2019G, with the symbol 2222, and a ±10% daily price fluctuation limit.
On the first day of trading only, the opening auction for the Saudi Arabian Oil Company (Saudi Aramco) will be extended for 30 minutes. Accordingly, the opening auction session will start from 9:30 a.m. until 10:30 a.m. AST on Wednesday 11/12/2019G only. Continuous trading will start at 10:30 a.m. AST, and closing auction at 3:00 p.m. AST as usual.
The opening auction will remain the same for the rest of the securities listed on the Main Market from 9:30 a.m. until 10:00 a.m. AST. Continuous trading for the rest of listed securities on the Main Market will commence at 10:00 a.m.

https://www.tadawul.com.sa/wps/portal/tadawul/home/!ut/p/z1/04_Sj9CPykssy0xPLMnMz0vMAfIjo8zijYycLQwtTQx83D39zA0cAx09wtzCQowNDEz1w_Wj9KPwKTGBKjDAARwN9INT8_QLsrPTHB0VFQHlACBH/?1dmy&urile=wcm:path:/Tadawul_en/SA-Tadawul/SA-PricesAndIndeces/SA-News/SA-MarketNews/CT-marketnews-20191206_Aramco1

Teller · 6 Re: World biggest IPO raises $25.6 Billion Fri Dec 06, 2019 7:22 pm

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I believe Apple market cap is around 1.1 trillion , Aramco its possible 2 trillion . As stock market investors this is a remarkable event for us.

ipo · 7 Re: World biggest IPO raises $25.6 Billion Sat Dec 07, 2019 12:55 pm

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Teller wrote:I believe Apple market cap is around 1.1 trillion , Aramco its possible 2 trillion . As stock market investors this is a remarkable event for us.

Its too early to predict , but most of the fund managers think its overpriced.
and with the 10% price band it may not have less number of executions. waiting for 11th Basketball