Saudi Aramco announced its plans to list on the Saudi Arabian stock exchange. Worth about $ 1.2 trillion, this could be the world's biggest initial public offering (IPO). The step is part of the country's strategy to reduce the Kingdom’s dependency on oil and diversify its economy.
Riyadh/Saudi Arabia — The IPO of Saudi Aramco has long been in the making. Initially the state owned oil giant planned to go public at international trading places. Legal complications in the US, doubts over the actual value of the company and the attack on the oil facilities in September have delayed the decision. Now, the world's most profitable company announced that it would go public at the Riyadh stock exchange. The price of the shares will be determined at a later date. Experts expect the Saudi's to make shares for 1 to 2 % of the company available.
Saudi Arabia’s vision for Saudi Aramco’s is to be the world’s pre-eminent integrated energy and chemicals company. Over the last three years, the producer was responsible for one in every eight barrels of crude oil produced globally and their proved liquids reserves, at the end of 2018, were five-times larger than the combined proved liquid reserves of the Five Major IOCs.
Amin H. Nasser, President and Chief Executive Officer of Saudi Aramco said that the company aims to grow its business sustainability by leveraging technology and innovation to lower its climate impact. Nevertheless, there is still some uncertainty about the interest of investors and the future strategy of the oil company.