Saudi Arabia kick-started off finally of what could be called as one of the most extensive Initial Public Offering globally.
This announcement comes after three years post the Crown Prince Mohammed bin Salman raised the initial idea- as well three weeks in after the plan to initially launch share sale was being shelved abruptly- Saudi Oil giant Aramco had announced the intention of listing the shares in a local stock exchange in Riyadh. It came just post Capital Market Authority has approved this offering.
According to the Oil giant announcement of its intentional list, the total quantity and as well as percentage of the Aramco shares to be sold off will be determined during the end of the book-building period. The trading is most likely to take place during December.
The best and positive fact is that the Oil Giant Aramco that pumps in around 10 percent of global oil production, mustered most profit by any other corporations the previous year with an accumulated income of $111 billion-far more even than Apple Inc., Googleโs parent Alphabet Inc. and Exxon Mobil Corp. combined.
The company was overall targeting $2trillion valuation- thatโs more than double that of Apple- and however, the kingdom is ready in accepting the valuation of $1.6 trillion to $1.8 trillion to ensure the IPO is a success, according to most people briefed on the matter.
This sales program is the core of Prince Mohammedโs Vision 2030 plan in overhauling the Kingdomโs economy as well as putting an end to its over-dependence on the oil exports. The proceeds from the IPO will boost the brand power of the OPEC nationโs sovereign wealth fund, which already has considerable investments in funds managed by Blackstone Group LP and SoftBank Group Corp.
