RIYADH, Saudi Arabia - Institutions and individual investors appear to have rushed to subscribe to shares in the world's most profitable company, Saudi Aramco.
With only 1.5% of new shares being issued, and the capital-raising limited to around $25 billion, demand is tight.
The 1% institutional allocation of initial public offering (IPO) is already oversubscribed, with $17.1 billion (64 billion riyals) worth of orders in hand.
The retail allocation has reportedly reached $2.67 billion (10 billion riyals), a banking source was quoted by Al Arabiya as saying on Thursday.
Institutions have until 4 December to subscribe. The final price for the shares will be determined on 5 December.
The company set an indicative price range of $8 to $8.53 (30-32 riyals) per share, which would capitalise Saudi Aramco at between $1.6 and $1.7 trillion.
The company, which made a profit last year of $111.1 billion, according to the prospectus will pay a dividend of $75 billion in 2020, for a yield on the new shares of just over 4%.
The company has reported a profit of $68 billion for the first three quarters of this year which equates to $90.67 billion annualised.
When the IPO is finalised Saudi Aramco's shares will list on the the Saudi Stock Exchange Tadawul.