RIYADH — Saudi Aramco has received orders worth 189.04 billion riyals ($50.4 billion) for the institutional tranche of its planned initial public offering (IPO), its financial advisers said in a joint statement on Tuesday.

The institutional book building began on Nov. 17 and investors have until Dec. 4 to place orders. Aramco plans to sell 1.5 percent of its shares, in a deal which could raise up to $25.6 billion.

The Saudi oil giant has received subscription orders from institutional buyers for around 6.3 billion of shares so far, Samba Capital, NCB Capital and HSBC Saudi Arabia said.

Saudi Aramco is offering 1.5 percent of its shares on the Tadawul, with 0.5 percent set aside for retail, or individual investors. The remaining shares are allocated for institutional investors, such as banks or sovereign wealth funds.

The company has set an indicative price range of SR30-32 per share ($8-8.53), which would value the oil giant at $1.6 to $1.7 trillion. At this valuation, the company could raise up to $25.5 billion from the IPO.

Aramco completed the retail portion of its initial public offering (IPO) with SR47.4 billion ($12.64 billion) in orders on Thursday, according to Samba Capital, the IPO’s lead manager.

According to the IPO prospectus, Saudi Arabian retail investors that hold their shares for a minimum of 180 days, or six months, would be eligible for a 10 percent discount through the allocation of additional bonus shares.

The proceeds from the listing will go towards diversifying the Saudi Arabian economy away from oil, and could be invested in sectors such as logistics, mining, or developing the manufacturing and industrial economy. — Al Arabiya English