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Saudi Aramco IPO gets USD44.3 billion in bids so far

December 02/2019

MOSCOW (MRC) -- Saudi Aramco has received bids for its shares totaling USD44.3 billion so far, lead manager Samba Capital said on Friday, putting its initial public offering on track to be over-subscribed, said Reuters.

The state-owned oil giant plans to sell 1.5% of the companys shares for as much as 96 billion riyals (USD25.6 billion), a deal which would give it a market value of USD1.7 trillion.

Overall demand so far totals 1.7 times the amount of shares on offer, with institutional investors having until Dec 4 to put their bids in.

In the first update on institutional investor interest in the listing, Samba said it had received bids from them worth 118.86 billion riyal(USD31.70 billion).

The retail tranche of the offering - which closed to subscribers on Thursday - has had bids totaling 47.4 billion riyals (USD12.64 billion), around 1.5 times the amount of shares on offer to retail investors. While comfortably oversubscribed, the level of interest is relatively muted compared to other Saudi IPOs.

When Saudi Arabias National Commercial Bank listed in 2014 the retail portion was 23 times over-subscribed.

As MRC informed earlier, ith Saudi Aramco yet to name any major foreign investors in its upcoming share sale, Malaysias state energy company Petronas decided to take a pass. Petronas follows Russias second largest oil producer Lukoil in turning its back on the initial public offering (IPO) which is likely to rank Aramco as the worlds most valuable company.

Petronas and Aramco have a joint venture in a USD27 billion refinery and petrochemicals complex in southern Malaysia that is set to start commercial operations this year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polyprolypele (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,436,390 tonnes in the first eight months of 2019, up by 9% year on year. Shipments of all PE grades increased. At the same time, the PP consumption in the Russian market was 909,260 tonnes in January-August 2019, up by 10% year on year. Shipments of PP block copolymer and homopolymer PP increased.

Saudi Aramco is an integrated oil and chemicals company, a global leader in hydrocarbon production, refining processes and distribution, as well as one of the largest global oil exporters. It manages proven reserves of crude oil and condensate estimated at 261.1bn barrels, and produces 9.54 million bbl daily. Headquartered in Dhahran, Saudi Arabia, the company employs over 61,000 staff in 77 countries.
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, Saudi Aramco.
Category:General News
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