Saudi Arabia kicks off the IPO of its state oil producer Saudi Aramco

By Nikita Chaurasia  Date: 2019-11-04

Saudi Arabia kicks off the IPO of its state oil producer Saudi Aramco

Numerous high-revenue companies are increasingly looking towards launching their IPO lately, primarily owing to the benefits offered by the process, including raising equity capital, liquidity for employees and investors, branding and visibility, the currency for M&A.

In fact, Saudi Aramco, officially Saudi Arabian Oil Company, currently the most profitable company in the world, has reportedly announced the launch its IPO with intentions to list its name in Riyadh Stock Exchange.

Trading of the Saudi Arabian company’s shares is expected to begin in December of this year.

The IPO is a part of the plan created by Saudi Crown Prince, Mohammed bin Salman to wean Saudi Arabia off oil and further develop other sectors of the economy.

While Aramco did not specify the time frame or how much of the total company it would be selling, according to verified sources, the company could possibly offer 1-2 percent of its shares on the regional bourse, raising somewhere between $20 billion - $40 billion in the process.

Aramco stated that the IPO would be divided into two tranches, for individual and institutional investors respectively. The purchase price and the percentage of company shares to be traded would be decided following the book-building period

Aramco executives would now initiate a global roadshow to court investors with a prospectus defining Saudi Aramco’s financial details is projected to be published later this month. 

Amin Nasser, CEO of Saudi Aramco stated that the new IPO would increase the company’s global visibility as the leading firm across the globe. However, Nasser declined to reveal anything related to the company's valuation, which the company executives claimed would be determined after consultation with potential financiers.

Saudi Aramco pumps around 10 percent of the total crude oil in the world. The company emerged as the most profitable company in the world in 2018 generating $111.1 billion net income in 2018. Aramco beat American industry giants including Exxon Mobil Corp and Apple Inc. in terms of income.

The company had halted its plans for a massive international listing of about 5 percent in 2018 amid debate on where to list overseas. However, talks over the plans resumes this summer.

Earlier this year, the company gathered $12 billion from its first-ever international bond, a move that many regarded as the company’s pre-IPO relationship building effort with investors internationally.

 

Source credit: https://edition.cnn.com/2019/11/03/investing/saudi-aramco-ipo/index.html

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Netflix confirms producing fictionalized version of Spotify’s ascension

Netflix confirms producing fictionalized version of Spotify’s ascension

By Nikita Chaurasia

Over-the-top content streaming & production giant Netflix Inc. is reportedly working on an untitled series that tells the story of one of the most successful music streaming companies, Spotify Ltd. The six-part series, already listed on Netflix,...

Edtech Byju’s is now India’s highest-valued startup at USD 16.5 billion

Edtech Byju’s is now India’s highest-valued startup at USD 16.5 billion

By Nikita Chaurasia

Byju’s, the largest education technology company, has emerged as India’s highest-valued startup after a USD 340 million funding round involving investors such as UBS Group, Blackstone, and Zoom founder Eric Yuan among others. Recently, B...

LiDAR maker Hesai Photonics secures USD 300 million in Series D funding

LiDAR maker Hesai Photonics secures USD 300 million in Series D funding

By Nikita Chaurasia

Hesai Photonics Technology Co. Ltd., a leading Shanghai-based LiDAR company, has reportedly secured USD 300 million in a Series D funding round which was led by GL Ventures LLC, Xiaomi Corporation, Hillhouse Capital Group, Meituan, and CPE. The roun...

Tesla terminates production of its Model S Plaid + variant indefinitely

Tesla terminates production of its Model S Plaid + variant indefinitely

By Nikita Chaurasia

CEO Elon Musk justified Model S Plaid as good enough against its successor. The Model S Plaid + was touted to be Tesla’s flagship vehicle, with a range of around 519 miles. After unveiling for the first time last year, American EV maker T...

ByHeart concludes largest U.S. clinical trial for infant food product

ByHeart concludes largest U.S. clinical trial for infant food product

By Nikita Chaurasia

ByHeart Inc., a New-York based infant, and baby nutrition company, has recently announced the completion of the largest clinical trial for new infant formula in the past 25 years. With this move, the company is earmarked to be the 4th FDA registered,...