Saudi Aramco has reportedly cancelled its roadshow in London and other European cities for its planned initial public offering (IPO), a day after scrapping investor events in Asia and North America, meaning its IPO is set to be a Saudi-only affair, according to media reports.
The move means that Aramco will now only market its shares to local investors in the kingdom, after the state energy giant officially ruled out an international capital market listing of shares in the near future.
Aramco released its share price document for the IPO on 17 November, in which it said it would be offering 1.5 per cent of the company’s shares on the Saudi Stock Exchange (Tadawul), at a rate of SR30-32 a share ($8-$8.5).
Aramco had earlier said in its IPO prospectus, released on 9 November, that the total number of shares in the company was 200 billion, which works out to an overall valuation of between $1.6tn and $1.7tn.
The final Aramco valuation will be revealed on 5 December when the company publishes the final price for shares.
The $1.7tn worth would make Aramco the highest-valued public-listed company in the world, and Riyadh would raise about $24bn-$25.6bn from the IPO, making it the world’s largest stock market listing ever.
However, that valuation is considerably lower than the $2tn valuation of Aramco that Riyadh had sought as a central component of Saudi Crown Prince Mohammed bin Salman’s ‘Vision 2030’ socio-economic transformation plan.