On Sunday 3rd of November 2019, the Chairman of Aramco Oil company announced that it would be going public and shares of the company would initially be available in the Riyadh exchange in Saudi Arabia. According to some officials, the company is initially offering it’s 5% stakes in the stock exchange, 2% would be offered in the Saudi stock exchange and 3% would be offered in some foreign exchange.
The Chairman said that, “Today marks a significant milestone in the history of the company and important progress towards delivering Saudi Vision 2030, the kingdom’s blueprint for sustained economic diversification and growth.” Analysts believe that the company can be valued at around $1.7 billion. The oil giant caters for 10% of the global demand and is critical for the global oil supply.
The chairperson said that the final price of the offering would be determined after the book-building period. The chairman did not confirm the dates for the foreign offerings and said that Riyadh offering is open to all Saudi citizens, foreign residents in the Kingdom and Gulf citizens.
The listing shows that the Saudi prince Mohammad Bin Salman is set to materialize his promise of shifting the country’s financial reliance from oil and is diverting resources for tens of billions of dollars worth of mega projects.