Aramco at $1.7 Trillion Gives Stock Room to Rise, Analysts Say
- Shares’ dividend yield will likely be between 4.4% and 4.8%
- Company announces IPO price range of 30 riyals to 32 riyals
A billboard displaying an advert for the Saudi Aramco IPO in Riyadh.
Photographer: Fayez Nureldine/AFP via Getty Images
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Demand for what could be the world’s biggest initial public offering will probably be high, and the price range announced by Saudi Aramco shows there’s room for the shares to rally when they start trading, according to analysts.
The company will sell shares at a range of 30 riyals to 32 riyals each, for a valuation of as much as $1.71 trillion. That’s spurred speculation the dividend yield may range from 4.4% and 4.8%, say analysts and money managers in the six-nation Gulf Cooperation Council.