Saudi Arabia announces Initial Public Offering (IPO) of the state oil producer, which is vast. This opens a chance for the investors to grab a piece of the world’s number one profitable company. It is said that records can be shattered this time! Saudi Aramco has officially announced on Sunday after the confirmations from the regulators, that it intends to put shares on the Tadawul Exchange, which is in Riyadh. It is expected that later this month, a prospectus will be outlined, wherein all the financial details of the company will be mentioned. The executives of Aramco will now take off to promote this to the investors internationally. CEO Amin Nasser was heard talking about how this IPO is going to grow their visibility globally, in a Press Conference.
Amin Nasser has not yet commented on anything on the valuation of the company, as he believes that it can be only understood after knowing the potential investors. The world’s largest exporter and business of crude oil is the other name of Saudi Aramco. The company has records for substantial outputs. It has vast oil reserves. The initial public offering is a part of (Saudi Crown Prince) Mohammed Salman Bin’s intention to develop the other parts of the economy of his country. The company and the Saudi government decided to float only 5% of the company in a deal back in 2018. It could raise an amount which is as high as $100 billion. The targeted markets were New York or London, including Riyadh. The project got stuck amidst some legal issues in the United States (US). It was also the doubt that was aroused in the mind of Salman Bin regarding the $2 trillion valuations.
The question of how much the floating will fetch vary majorly. Bin Salman pushes the value of Aramco to $2 trillion, but analysts confirm that it cannot be valued for more than $1.5 trillion. IPO processes will take time, as there will be confusion arising in recent weeks. The executives have confirmed about moving forward with this project. The chairman Yair Al-Rumayyan was found telling at the press conference, that it is the right time for Saudi Aramco to be a public company and get new disclosures, reach new heights. According to the recent media reports, shares will start trading by early December 2019.