The Wall Street Journal: Saudi Aramcos IPO Draws $44.3 Billion Worth Of Bids

Saudi Aramco’s share sale has attracted bids worth $44.3 billion as of Friday, about 1.7 times the amount the kingdom’s government plans to raise in what is on course to be the world’s largest listing when it formally prices next week.

Subscriptions to the sale are overwhelmingly from Saudi investors and others in the region, according to the banks arranging the initial public offering, indicating a lukewarm response from international institutions that have balked at the energy giant’s valuation of $1.6 to $1.7 trillion set by the Saudi government.

The kingdom is seeking to sell 1.5% of the state-controlled company, known officially as Saudi Arabian Oil Co., and with most of the bids at the top end of the valuation the government is likely to raise $25.6 billion. That would beat out Alibaba Group Holding Ltd.’s 2014 IPO, which raised $25 billion.

The sale is a key element of Crown Prince Mohammed bin Salman’s program to open up his country to foreign investors and diversify its oil-dependent economy. The IPO is the culmination of the crown prince’s yearslong effort to sell part of Aramco after first raising the possibility of a listing in 2016. Prince Mohammed has accelerated the much-delayed listing this year, installing loyal officials who backed the share sale and marginalizing those who opposed it.

An expanded version of this story appears on WSJ.com

RECENT NEWS

Gyrostat May Market Outlook: When The Cost Of Protection Falls - Signals For Portfolio Positioning

This monthly Gyrostat Risk-Managed Market Outlook does not attempt to forecast market direction. It... Read more

The Risk Most Portfolios Do Not Explicitly Manage

Most portfolios are constructed on a simple and widely accepted assumption: that equity risk will be r... Read more

Gyrostat April Outlook: The Changing Cost Of Protection

Signals For Portfolio Construction This monthly Gyrostat Risk-Managed Market Outlook does not attemp... Read more

What Advisers Misunderstand About Protection

Protection is rarely rejected outright. More often, it is misunderstood. Most advisers recognise th... Read more

Gyrostat Market Outlook: Looking Beyond The 30-day Volatility Headlines

This outlook examines how financial markets are pricing risk rather than attempting to forecast market... Read more

Gyrostat Capital Management: The Hidden Assumption In Most Portfolios - Stability

Markets do not usually fail portfolios. Assumptions do. Most portfolios are built with car... Read more