This Sunday, the oil giant of Saudi Arabia—Saudi Aramco— declared that it will be sharing most of its share-about 1%-3% of total shares-as first-ever public offering.
The company is known for its most profitable status in the world. According to the market experts, the public stock offering could turn out as a biggest initial public offering (IPO) ever.
Saudi Aramco’s IPO is planned on Tadawul exchange, Saudi Arabia. The company has not revealed about the price ranges for the shares yet.
Amin Nasser—president and CEO, Saudi Aramco—stated that the listing of the company has made himself proud of it.
“The IPO will be surely beneficial in increasing international visibility of our company”, he added.
Mohammed bin Salman—crown prince, Saudi Arabia— expressed his positive hopes as the company is finally going public after so many years. As per his statements made in 2016, the company was expected to go public by 2017 which may evaluate about $2 trillion. But as the company is finally all set to go public now, the evaluation counts for nearly $1.5 trillion, according to the bankers.
The supply from Saudi Aramco accounts for 10% of the global crude oil supply. The profitable venture made nearly $11 billion in 2018 and acquired the top room by having such giant gain than other giant ventures such as Alphabet, JP Morgan Chase and Facebook.
According to The guardian, Aramco spends $2.80 to grab a barrel full of oil from the barrel and gets $62 for selling such barrels in the market. This is one of the major reasons behind Aramco’s giant profitability. The company also gains from its other investments in various fields such as infrastructures and oil reserve accessibilities.
It is said that the IPO is planned for making Saudi Arabia less dependent on oil market. The recent attacks on oil mines have increased the geopolitical and investment tensions. To avoid stress on country’s financial condition, switching over other businesses is necessary, according to Mohammed bin Salman.
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