Saudi Aramco has received nearly enough early orders to pull off its IPO

Building early momentum is important in large equity offerings, as investors are encouraged to jump in when they see other institutions rushing to buy shares.

Saudi Aramco’s bankers are seeing sufficient early demand to pull off the state oil giant’s initial public offering just three days after launching the deal, people with knowledge of the matter said. The IPO arrangers are indicating in private discussions that they already have nearly enough orders to cover the institutional portion of the deal, the people said, asking not to be identified because the information is private. They still have more than two weeks to go, as fund managers can subscribe to the stock until Dec. 4, according to Aramco’s prospectus.

Building early momentum is important in large equity offerings,