Saudi Aramco has earned a record amount of approximately $25 billion from its initial public offering (IPO), the Saudi Arabian national oil company said in a press release on Thursday.
The company offered 1.5% of its shares by issuing a total of 3 billion shares. The final offer price per share was determined at 32 Saudi riyals ($8.53), ensuring the company will earn $25.59 billion from the IPO.
Demand from investors for Aramco shares came much higher than analysts anticipated, as the total value of subscriptions exceeded the earlier estimates for the IPO.
"The offering process generated subscriptions by institutional subscribers of 397 billion Saudi riyals / $106 billion ... [and] from individual investors in the offering equal to 446 billion Saudi riyals / $119 billion," the statement read.
With this result, Aramco broke a record from its IPO by earning much more than Chinese e-commerce giant Alibaba's IPO in 2014 in the New York Stock Exchange which raised $21.8 billion in a single day.
Earning $25.59 billion for 1.5% of its shares also put Aramco's market capitalization to just over $1.7 trillion, surpassing Apple's market capitalization of $1.1 trillion, to become the world's most valuable company.
By Ovunc Kutlu in Vienna