Aramco IPO Could Entice Saudi Individuals Back to Riyadh Bourse - Bloomberg:
Saudi Aramco’s gigantic initial public offering could trigger a return by retail investors to the Riyadh stock exchange as individuals snap up shares in the world’s most profitable company.
The oil behemoth said over the weekend in its offering prospectus that as much as 0.5% of the stock will be allocated to individual investors, while leaving potential buyers in the dark about the size of the stake it plans to sell and the pricing range.
Were the company to fetch a valuation of $1.5 trillion -- lower than the range aimed for by Saudi Arabia, but closer to estimates by foreign investors -- the portion set aside for individuals could be $7.5 billion. Some locals have been selling part of their equity portfolios recently to raise cash for Aramco stock, according to analysts and investors.
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