Saudi Approves IPO of Aramco

Saudi Approves IPO of Aramco

Agency News

In view of Crown Prince Mohammed bin Salman's ambitious restructuring of the kingdom's oil-reliant economy, Saudi Aramco said on Sunday that it will list on the Riyadh stock exchange.

The IPO is said to be world's largest one and a "significant milestone" in the history of the energy giant which pumps 10 per cent of the world's oil.

With analysts saying that Aramco could be valued at up to $1.7 trillion, the initial public offering (IPO) could be the world's biggest, depending on how much of the company it decides to sell.

"Today marks a significant milestone in the history of the company and important progress towards delivering Saudi Vision 2030, the kingdom's blueprint for sustained economic diversification and growth," Aramco chairman Yasir al-Rumayyan said.

The final offer price and the number of shares to be sold "will be determined at the end of the book-building period", said the firm, which is headquartered in the eastern city of Dhahran.

Aramco had initially been expected to sell a total of five per cent on two exchanges, with a first listing of two per cent on the Tadawul Saudi bourse followed by a three per cent listing on an overseas exchange.

Saudi Aramco’s 2018 net profit was at $111.1 billion that is higher than the profits of Apple, Google and Exxon Mobil combined.

The IPO of the world's most profitable company is designed to turbo charge Crown Prince Mohammed bin Salman's economic reform agenda by raising billions to diversify the kingdom, whose dependency on oil was highlighted by the production impact of the September 14 attacks.