Saudi Saudi Aramco will put 1.5% of the shares in the IPO at a price of $ 8 per share

Saudi state oil company Saudi Aramco will place 1.5% of the shares (around 3 million) in the IPO (initial public offering) on the Tadawul stock exchange, reports Bloomberg referring to the message of the company.

price Range will be 30-32 Saudi Riyal per share (approximately 8-8,5 US dollars). The total cost of the company thus will be 1.6–1.7 trillion dollars, estimated by the Agency. Saudi authorities had previously estimated it at $ 2 trillion.

Oil giant, therefore, plans to raise up to 96 billion riyals (approximately 25.6 billion USD). The final amount of the placement shares will be known on 5 December.

Aramco can beat a record $ 25 billion raised by Chinese e-Commerce giant Alibaba, which debuted on the stock market in new York in 2014. Thus IPOs Saudi Aramco may become the largest in the history of the stock market.

To make the company more attractive for investors, Saudi Aramco plans to pay next year $ 75 billion in dividends, which will give them a yield of 3.75%. In addition, dividends will not fall until 2024, regardless of oil prices.