The world’s biggest oil company is planning to sell shares in the entire business and not just in its refining or distribution operations, Bloomberg reported.
The New York-based media outlet quoted Aramco’s chief executive officer as saying that the company will announce “very soon” a list of investment banks and consultants advising it on the initial public offering.
Aramco CEO Amin Nasser did not specified a date, but he said that the Saudi Arabian Oil Co. plans to list shares on the Saudi stock market and is also considering foreign bourses in London, Hong Kong and New York.
Aramco’s plan to sell a stake of about 5 percent could value the company in trillions of dollars, Bloomberg reported.
“We need to do a lot of internal work to prepare for this listing,” Nasser said in Bahrain.
“We are listing a part of the entire company, and not just downstream,” he said, referring to operations including refining, marketing and distribution.
Saudi Arabia, under pressure from lower crude prices, wants to sell shares in Aramco in early 2018 as part of an effort to generate revenue and reform its economy. The government hopes to raise about $100 billion from the IPO of its flagship asset. The planned sale, which Deputy Crown Prince Mohammed bin Salman announced in April, could be the world’s largest share offering, according to the interview.
“There are no obstacles for the IPO of Aramco,” Nasser said. “It’s going very smoothly, and we are on target. We achieved a lot of progress so far. People have to appreciate the size of Aramco and its complexity.”
The company will review its budget “shortly,” he said. “Our spending program is active and evolving.”
Source: Bloomberg
