The biggest ipo of world is the SAUDI ARAMCO ipo till now. Here saudi aramco ipo is explained vivid. Saudi aramco ipo is opened till 4th december,2019. The price range of saudi aramco ipo,world’s biggest ipo was 30 riyal to 32 riyal. With the help of ipo saudi aramco sold its 1.5% stake and picked 24 billion dollar to 25.6 billion dollar. If it is said something about saaudi aramco’s valuation then after ipo the valuation of saudi aramco is about 1.6 trillion dollar to 1.71 trillion dollar. Saudi aramco is the world’s biggest company before ipo but it was not publically listed company. But now the saudi aramco company is publically listed.
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In november,2019 the valuation of APPLE was 1.18 trillion dollar and the valuation of MICROSOFT was 1.15 trillion dollar. Till november 2019 apple was the world’s largest company but after ipo saudi aramco is the world’s largest company. And the valuation gap between apple and saudi aramco is much more. To attract the investors saudi aramco promised to give 75 billion dollar as dividend. And it is biggest dividend in history. After selling the 1.5% stake of saudi aramco that much fund was collected was deposited in saudi’s Public Investment Fund. And saudi’s public investment fund is continuously investing in Softbank’s Vision Fund that invests in technology companies. Saudi’s prince,MBS was planning to bring this ipo from previous some years.
But his international image was damaged because of a murder case. A person rised questions about the some activities of saudi’s prince,MBS. So MBS murdered the man and his image was damaged. As a result to bring the ipo of saudi aramco was difficult to him.But the ipo that was planning from 4-5 years ago was finally come in november,2019. MBS(saudi’s prince) tried to launch the ipo with the valuation of 2 trillion dollars. But it did not happen. In spite of being this the saudi aramco ipo was the world’s highest ipo. Before saudi aramco ALIBABA group recorded as the largest ipo picking 25 billion dollar. Before this Agriculture Bank of China picked 19.2 billion dollars from their ipo.
Saudi Aramco IPO
Now that question comes is that if saudi aramco is the world’s biggest company and all things are going right then why saudi aramco wanted to launch their ipo? Because saudi’s price,MBS did know well that in future time the demand of oil would be obviously decreasing. As a result of coming electric vehicles the demand of oil is gradually decreasing. On the other hand everyone is supporing ‘Go Green’ word to stop the climate change. So many countries tries to use limited oil. For this reason MBS wanted to remove the dependency on oil. For this reason saudi arab was investing heavily in technology companies,softbank’s vision fund since previous some years.
He takes many initiative so that dependency on oil will reduce. The half GDP of Saudi Arab is based on oil. If something is said about the ipo then everyone know that the valuation of this ipo was obviously more. For that reason MBS told the shareholders about dividend and bonus so that the ipo was subscribed by investors in any way. But most of investors know what will be happening with the demand of oil in future? And company will face problems with this valuation. And if something is about company’s management, directly about MBS then he is not common person. He does many uncommon activities.
How to invest in Saudi Aramco IPO?
Now the paragragh is about the investment in saudi aramco. It was quite impossible to invest directly in saudi aramco’s ipo. You could invest in it indirectly. But there is few global mutual funds that wants to invest in it. There is few global mutual funds like Kotak Global Emerging that invest in forgein companies. But it does not mean that they obviously invest in saudi aramco. So india’s retail investors could not participate in saudi aramco’s ipo. If any company was listed in US stock exchange or stock market then the chance of investment can be got. But saudi aramco released its ipo under saudi’s stock exchange.
If you have any query related to Saudi Aramco IPO please comment below so that the topic can be covered. Best wishes to invest. If the post helps you please share the article so that other can know about it and leave a comment.