International Finance
Oil & Gas

Saudi Aramco to publish IPO prospectus by month-end

Saudi Aramco IPO prospectus
The prospectus will be published in Arabic on October 25 and then in English two days later

Saudi Arabia’s state-owned oil company Saudi Aramco is expected to publish its IPO prospectus by the end of this month. According to reports, the prospectus will be published in Arabic on October 25. The English version, meanwhile, will be published two days later.

The prospectus will be used to market Saudi Aramco’s shares ahead of the IPO.

Preparations are in its final stage as the oil giant gears up to list shares on the Tadawul exchange. Saudi Aramco’s listing is a key part of Crown Prince Mohammed bin Salman’s economic reform program. It is expected to list 5 percent of its shares through the planned domestic and international listing.

Despite Saudi Aramco being ready to publish its IPO prospectus, it is unclear what percentage of its shares will be listed domestically. The company will raise billions from the listing, which will be used to diversify Saudi Arabia’s economy and reduce its dependence on oil.

The Saudi Crown Prince Mohammed bin Salman has targeted the coveted $2 trillion valuation for Saudi Aramco ahead of the IPO, but many argue it to be unrealistic. The company is expected to be valued at around $1.5 trillion instead.

According to reports, last month, the oil giant hired nine banks as joint global coordinators to lead its IPO. These include JP Morgan Chase, Morgan Stanley, Saudi Arabia’s National Commercial Bank, Merrill Lynch, Goldman Sachs, Credit Suisse Group, Citigroup, HSBC Holdings and Saudi Arabia’s Samba Financial Group.

The IPO was scheduled to take place in 2018, but the company postponed its plans with concerns about public scrutiny of the company’s finances.

Many expected Saudi Aramco to put off the IPO process this year as well after the September 14 drone and missile attack on its two oil facilities that destroyed out about 5.7 million barrels a day.

What's New

Saudi non-oil business activity stumbles in May amid order slowdown

IFM Correspondent

OPEC predicts increase in global oil demand, IEA differs

IFM Correspondent

Oil might rise to USD 100 in Middle East due to conflict, warns World Bank

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.