Riyadh: Saudi Arabian state oil giant Saudi Aramco priced its initial public offering (IPO) at the high end of the targeted range, a level that will allow the company to raise a record total of at least $25.6 billion.
The company plans to sell 3 billion shares, or 1.5 per cent of its total shares, at a price of 32 Saudi riyals ($8.53) per share.
This IPO's size gives Aramco a market valuation of $1.7 trillion, pushing it ahead of Apple ($1.17 trillion) as the world's most valuable publicly traded company, Efe news reported.
Trading of Aramco's shares is expected to begin next week pending an announcement by Riyadh's stock exchange.
Aramco had previously announced that its shares would not be offered in the United States, Australia, Canada or Japan.
Saudi Arabia has pursued a commitment from wealthy Saudi citizens and regional allies to purchase shares as a gesture of solidarity and goodwill as opposed to an investment decision.
Meanwhile, the kingdom's banks were directed to double the leverage limit for loans to investors looking to buy Aramco's shares. Compared to an average leverage-ratio limit for loans of 1 to 1, banks were allowed to lend to retail customers for this purpose at a 2-to-1 ratio.
The company will offer 33.3 percent of the available shares (0.5 percent of Aramco's total shares) to retail investors, while the remaining 66.7 percent have been allocated for institutional investors.
The IPO was 4.65 times oversubscribed, with total bids of $119 billion, according to sources close to the process.
