Saudi Aramco, which is one of the largest companies in the world and most prominent in Saudi Arabia, is going public for the first time. The oil giant company is trying to make its IPO bigger than anyone’s expectations by allowing foreign investors to subscribe to its shares. Foreign investors who would rather have to comply with more rules and restrictions in Saudi Arabia might not face such an issue when they are investing their money into Saudi Aramco. The financial company which is taking responsibility for the IPO of Saudi Aramco said that they are more focused on the domestic share market than international. Since Saudi Aramco is that company in which many people want to invest their money, the domestic demand cannot be overlooked. Some foreign investors even criticized such a sort of IPO, which is not targeting international investors. However, IPO assisting financial companies said that foreign investors can still invest in Saudi Aramco if they want to. The rule which was previously blocking the path of foreign investors for IPO of Saudi based companies has been erased.
Foreign investors can claim shares of Saudi Aramco in the name of qualified institutional investors who get the right to acquire shares before the general public. Official figures show that foreign investment in Saudi Arabia has doubled as compared to previous years. Now the total FDI in Saudi Arabia stood at around 9.04 percent, and this number might get increased with Saudi Aramco’s latest IPO. Saudi Aramco is receiving a high pre-orders for its shares, and market capitalization from such order has crossed the benchmark of $20 billion already. Financial advisors are expecting more grand IPO for Saudi Aramco, which is undoubtedly one of the favorite companies of any investors. Aramco is issuing more than 3 billion shares for $8.74 per share, which makes it one of the biggest IPO in history.