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Saudi Aramco IPO — The Largest in History

$25.6B raised at a $1.7T valuation in December 2019.

Saudi Aramco listed on the Tadawul (Saudi exchange) in December 2019, raising $25.6B and topping Alibaba's $25B record. The greenshoe pushed total proceeds to $29.4B.

Originally MBS targeted a $2T valuation with a dual-listing in NY or London. International investors pushed back on valuation (estimated fair value $1.2–1.5T) and on governance concerns. The bank syndicate eventually scoped the deal down to a local-only listing at $1.7T.

The float was just 1.5% of total shares. Most demand came from Saudi institutional and retail buyers, plus regional sovereign wealth.

Underwriters: JPMorgan, Morgan Stanley, Goldman Sachs, Citi, HSBC, plus local banks.

Key Takeaways

  • →Even the world's most profitable company doesn't always get its target valuation.
  • →Small float + captive demand can support a premium price.
  • →Governance concerns directly affect IPO pricing.