Investors were eagerly awaiting the IPO of Saudi Aramco, the world's largest oil company. Now it has been opened for investment. It may be the world's largest IPO. The company has been valued at about $ 1.7 trillion (about Rs 122 lakh crore) and is expecting to raise $ 25.60 billion (about Rs 1834 billion) from the IPO. Indians can also invest in this IPO.
In this IPO, opened on November 17, Indian investors can invest till November 28, while Saudi investors will be able to invest till December 4. The share price will be decided on 5 December. After this, the shares of the company will be available for purchase on December 11 on Saudi Tadawul Exchange.
13 times bigger company than Reliance
Reliance is the largest company in India with a market capitalization of around Rs 9.33 lakh crore, in view of this, Aramco is 13 times bigger than Reliance, whose valuation in rupees is Rs 122 lakh crore. Aramco's valuation of Rs 1.7 lakh crore is a shocking figure considering that India's total GDP is around Rs 2.6 lakh crore. Crown Prince Mohammed bin Salman of Saudi Arabia previously wanted a valuation of $ 2 trillion for this, but now the bankers have made it clear that such a valuation will not be available.
Aramco has said that it wants to sell its 1.5 per cent stake, or about 3 billion shares, for which the price range has been kept from 30 to 32 riyals. That is, the price of a share can be around 8 dollars or 572 to 611 rupees.
If Aramco is successful in raising funds at its top range price, it can raise $ 25.60 billion, which means it can break the record $ 25 billion raised from Alibaba's IPO. China's leading e-commerce company Alibaba was listed in New York in 2014.
About 10 percent of the world's crude oil is produced by Aramco and it has been the world's highest profit making company in the year 2018. In terms of earnings, it has overtaken companies like American giant Apple Inc., Exxon Mobil. Last year, the company earned $ 111.1 billion.
According to RBI rules, domestic investors can invest a maximum of $ 2.50 lakh in a financial year abroad under the Liberalized Remittance Scheme (LRS). This amount can also be used to buy shares, buy debt security, etc.
This investment can be done through a foreign broker only, so you will have to contact an Indian stock broker for this. Apart from this, investments can also be made by such mutual funds / ETFs, which invest in Arab markets.
