Saudi Aramco is worth up to $1.7 trillion at the IPO price range set by the oil giant on Sunday, below the $2 trillion targeted by Saudi’s crown prince but still vying for the title of the world’s biggest IPO.

Aramco said on Sunday it plans to sell 1.5 per cent of the company, or about 3 billion shares, at an indicative price range of 30 riyals to 32 riyals, valuing the IPO at as much as 96 billion riyals ($25.6 billion) and giving the company a potential market value of between $1.6 trillion and $1.7 trillion.

The IPO size could be bigger if they use a 15 per cent over-allotment option, known as a “greenshoe” option.

This could just beat Chinese e-commerce giant Alibaba’s record $25 billion New York stock market debut in 2014.

“We are planning to subscribe to the IPO in two funds that we manage,” said Zachary Cefaratti, chief executive officer of Dubai-based Dalma Capital Management Ltd, adding that the preliminary valuation was “in line with our expectations”.

Aramco’s IPO is expected to be a huge hit among Saudis who are being offered 0.5 per cent of the company.

Retail investors have until Nov.28 to sign up for the IPO while institutional investors can subscribe until Dec.4.

Aramco kicked off its IPO on Nov.3 after a series of false starts. Crown Prince Mohammed Bin Salman, who floated the idea four years ago, is seeking to raise billions of dollars to invest in non-oil industries, create employment and diversify the world’s top crude exporter away from oil.

In its original prospectus, published on Nov.9, Aramco said the domestic IPO would be made to institutional investors outside the United States according to Regulation S of the United States Securities Act of 1933, and inside the United States under the Rule 144A of the US Securities Act.

But on Sunday in an addendum to the IPO prospectus Aramco said that it had removed any reference to such regulations, which three people familiar with the matter said suggested there would not be any international roadshows to market the shares.

“It was not worth it from their view. If there’s no substantial value or demand why do it and take additional legal risk,” a banker familiar with the matter told Reuters.

Aramco is yet to name any cornerstone investors in the deal or formally disclose the listing date.

Analysts from banks working on the Riyadh bourse had given a valuation range of $1.2 trillion to $2.3 trillion for Aramco’s IPO..

“The Aramco IPO valuation of $1.7 trillion could provide room for upside for discerning investors,” said Nirgunan Tiruchelvam, head of consumers equity research at Tellimer.

Aramco is the world’s most profitable company with a planned dividend of $75 billion next year, more than five times larger than the payout by Apple, the biggest of any S&P 500 company.

But it is a bet on the price of oil at a time when global demand is expected to slow from 2025 due to measures to cut greenhouse gas emissions and rising use of electric vehicles.

The Aramco listing is part of a year-end equity market rush, with Alibaba taking orders for a Hong Kong listing that is expected to raise up to $13.4 billion.

The Riyadh listing comes after initial hopes for a 5 per cent IPO on the domestic and international bourses were dashed last year amid debate over valuation and where to list Aramco.

Aramco said the IPO timetable was delayed because it began a process to acquire a 70 per cent stake in petrochemicals maker Saudi Basic Industries Corp.

Saudi Aramco on Nov.10 said it would start taking bids from investors on Nov.17. The 658-page document said the final share price would be determined on Dec.5, a day after subscriptions close, in what is expected to be the world’s biggest initial public offering.

Aramco officials announced the share sale on the Riyadh stock market for the world’s most profitable company, which pumps 10 per cent of global oil supply.

The prospectus said the state giant would sell up to 0.5 per cent of its shares to individual retail investors but that it had still not decided on the percentage for larger institutional buyers.

Saudi investors appear keen on the prospect of owning a piece of the company, seen as the kingdom’s economic crown jewel.

The company said it had hired a host of international banking giants including Citibank, Credit Suisse and HSBC as financial advisors and book-runners.

Reuters