INDIAN CAN INVEST IN SAUDI ARAMCO IPO

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Much awaited Saudi Aramco IPO open for subscription on 17 Nov 2019.

The state-owned oil giant Saudi Aramco announced on Nov 3 that it will be floating its IPO on the Riyadh stock market. This is more than three years after Crown Prince Mohammed bin Salman first raised the idea to offer shares in the world’s largest oil producer.

Aramco will mainly rely on local demand — one third of the offering is reserved for Saudi retail investors. They could offer 1-2% of its shares on the local bourse, raising as much as $20-40 billion.

Since 2016, the company is targeting a $2 trillion valuation — more than twice that of Apple. But on Sunday, Saudi Arabia put a valuation on Aramco of between $1.6 trillion and $1.71 trillion.

Saudi Aramco said it would sell 1.5 percent of the company in a blockbuster initial public offering worth between $24 billion and $25.6 billion. This could just beat Chinese e-commerce giant Alibaba’s record $25 billion New York stock market debut in 2014 — currently the world’s largest IPO.

The world’s biggest initial public offer opened on November 17, for institutional investors and will be open for subscription throughout the week till Dec. 4. For retail investors, the issue will open on November 28. Being an Indian citizen, you can still invest in the IPO

Indian can invest in this IPL by two way

  1. Invest in mutual fund which promising for investment in this IPO. Kotak Global Emerging Fund or Franklin Asian Emerging Fund. Buying an international mutual fund would make it possible for investing in the IPO and later on Saudi Aramco shares after the listing
  2. Open Dmat account with brocker which also have operation in Saudi Arabia

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