Saudi Aramco Announces its IPO After Nearly Four Years of Delay

After weeks of uncertainty, the world’s largest oil company, Saudi Aramco, announced its IPO on Sunday. According to the company, around 2% of its shares will be listed for public trading on Riyadh’s stock exchange.

The plans to launch the IPO were approved by Saudi Crown Prince Mohammed bin Salman after they had been in the works for almost four years. The move is aimed at helping the kingdom diversify its economy beyond oil.

While the Saudi Crown Prince had initially estimated Saudi Aramco’s value at around $2 trillion, bankers have estimated that investors could peg the value at a more conservative $1.5 trillion for the company. Aramco aims to raise anywhere between $20-$40 billion with its IPO.

Over the next few days, Aramco is expected to hold meetings with investors to get a better sense of their interest and calculate a more accurate price range for its valuation. Aramco’s Chairman Yasir al-Rumayyan also confirmed that the company will soon take a decision on international listing of its shares in the future.