Saudi Arabia prices its shares ahead of prospective biggest-ever IPO

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The world’s most profitable company, Aramco, makes its first public stock offering in mid December, and plans to price its shares on Dec 5. The IPO, part of an effort by Crown Prince Mohammed bin Salman to diversify the Saudi economy away from oil, carries risks for investors due to the increased geopolitical and military tensions in the Gulf region.

The move comes less than two months after Aramco’s oil facilities were attacked by drone strikes, which for a time halved the country’s oil exports.

National Public Radio reports that Aramco supplies about 10 per cent of the world’s crude oil. In 2018, the company made US $111 billion.

Trading will take place on Saudi Arabia’s Tadawul exchange. Aramco, owned by the Saudi royal family, will sell an unspecified number of shares, thought to be between 1 per cent and 3 per cent of the company. Bankers have advised that the valuation should be around US $1.5 trillion.

Saudi Aramco, World's Most Profitable Company, Will Make First Public Offering (NPR Nov 2019)

Should You Buy the Saudi Aramco IPO? (Forbes Nov 2019)

Date written/update: 2019-11-12