No timeline for an initial public offering of Saudi Aramco yet
Saudi Arabian Oil Company has received approval to list its shares on the domestic stock market. This follows the kingdom’s goals to diversify in a bid to create the most valuable listed company in the world. In a press release on its website, the Capital Market Authority said that it has issued a resolution approving Saudi Aramco’s application for registration as well as offering a part of its shares.
Pricing for the stock to begin in November
Now, there isn’t any timeline for the IPO. Al-Arabiya, Saudi-owned satellite channel reported that pricing is likely to start on November 17 citing anonymous sources. The final stock price is set for December 4 and it will begin with shares being traded on Tadawul stock exchange on December 11 according to the channel.
This approval of share sale in the Saudi company comes a few weeks after the attacks on its oil facilities. It shows that the country is determined to move ahead regardless of the setbacks. The IPO was created to boost the economic reform agenda by Crown Prince Mohammed bin Salman by raising billions of dollars to diversify the kingdom after the crippling effects of the September 14 attacks.
The aim of the share listing is to raise $100bn for the development programs and the kingdom hopes the firm can be valued at $2trillion. That price will push Aramco’s worth to be 50% more than the most valuable companies in the world, Apple and Microsoft. Both companies have a market cap of $1 trillion. Riyadh also looks to list a 1 to 2% stake on the stock market of Saudi in a bid to raise $20bn-$40bn. The crown prince plans to list 5% of the company in the long term. After the domestic IPO, an international sale should follow.