RIYADH: Saudi Arabia on Sunday put a value of up to US$1.71 trillion on energy giant Aramco in what could be the world's biggest IPO, but missed Crown Prince Mohammed bin Salman's initial target of US$2 trillion.
But the plans are a long way from the crown prince's initial aim to raise as much as US$100 billion from a dual listing - a first flotation of two percent on the kingdom's Tadawul bourse, followed by a further three per cent on an overseas exchange. Aramco has also shied away from plans to list on foreign exchanges such as New York owing to litigation risks.
"If subsequently effectively deployed, the funds raised could be used to support longer-term economic growth in Saudi Arabia," said S&P Global Ratings. Last week senior cleric Abdullah al-Mutlaq sought to drum up support for the IPO among ordinary Saudis, saying in a local television programme that it was permissible in Islam and even religious scholars were likely to participate.