Saudi Aramco Goes Public

AAATrade
AAATrade
Nov 6 · 2 min read

On Sunday, Saudi Aramco announced its plans for offering stocks in the market. Saudi Aramco said that it plans to sell 1% or 2% of its company on the Saudi stock exchange, the Tadawul.

If the company sells 1%, it would earn $15 billion for the company. If it sold 2%, it would earn $40 billion.

The value of giant Saudi Aramco is about $1.2 trillion, according to Bloomberg’s analysis. The company has massive oil reserves and daily output. The company is the number one exporter of crude oil worldwide, while it has a monopoly in Saudi Arabia.

“(The IPO) will increase our international visibility as the leading company in the world,” CEO Amin Nasser said.

The company did not mention if it will list it in a foreign stock market. “For the (international) listing part, we will let you know in due course. So far, it’s only on Tadawul,” Aramco chair Yasir al-Rumayyan told.

AAATrade analysis department implying that investing in Aramco caring some risks due to oil prices volatility that we are experiencing in the last few months.

“Political and strategic risks are high for any firm operating in the region, not least one which is an arm of the Saudi state. Aramco also has limited control in output policy, a key part of Saudi Arabia’s OPEC management,” he added.

Climate campaigners are worried about this action of the company, because Saudi Aramco has a massive carbon footprint. “This IPO will be a boost to a planet-wrecking company linked to a regime with a dubious human rights record,” said Adam McGibbon, campaigner at Global Witness.

According to recent reports in media, shares will start trading next month.

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Last updated: 06 November 2019.

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