State-owned petroleum and natural gas company Saudi Aramco has set the offer price range for the initial public offering (IPO) of its shares at SAR30 ($7.90) to SAR32 ($8.50) a share.

The base offer size will be 1.5% of the company’s outstanding shares, which could value it at up to $1.7tn.

Earlier this month, the company announced its intention to proceed with an IPO on the main market of Saudi stock exchange, Tadawul.

The offering period for the institutional subscribers and individual subscribers began on 17 November. Saudi Aramco has also issued a prospectus for its IPO to float on Tadawul.

The intention to go for an IPO, which is due next month, was first mentioned by the government in 2016. Crown Prince Mohammed bin Salman believed the company was worth around $2tn.

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By GlobalData

At the time of announcing the intention to float, Saudi Aramco president and chief executive officer Amin H Nasser said: “Saudi Aramco’s vision is to be the world’s pre-eminent integrated energy and chemicals company.

“Over the last three years, we were responsible for one in every eight barrels of crude oil produced globally and our proved liquids reserves, at the end of 2018, were five times larger than the combined proved liquid reserves of the Five Major IOCs. We are a steadfast contributor to the world’s energy security.

“Our mission is to provide our shareholders with long-term value creation through crude oil price cycles by maintaining our pre-eminence in oil and gas production, capturing additional value across the hydrocarbon value chain and profitably growing our portfolio.”

A portion of the funds will be used to invest $45bn into SoftBank’s Vision Fund while $3.5bn will be used to acquire a stake in Uber Technologies.