Saudi Aramco will list on the Riyadh stock exchange in what could be the world’s largest initial public offering.
The Capital Market Authority approved Aramco’s offering and the shares are likely to start trading in December.
Aramco, which pumps about 10% of the world’s oil, is considered as the World’s most profitable company. It generated the most profit of any corporation last year with net income of $111 billion — more than Apple Inc., Google’s parent Alphabet Inc. and Exxon Mobil Corp. combined. The company was targeting a $2 trillion valuation — more than double that of Apple — although some analysts see about $1.5 trillion as more realistic.
The approval shall be valid for six months, and the company’s prospectus will be published prior to the start of the subscription period.
“Today marks a significant milestone in the history of the company and important progress towards delivering Saudi Vision 2030, the kingdom’s blueprint for sustained economic diversification and growth,” Aramco chairman Yasir al-Rumayyan said.
“Since its formation, Saudi Aramco has become critical to global energy supply,” he said in a statement.
The final offer price and the number of shares to be sold “will be determined at the end of the book-building period”, said the firm, which is headquartered in the eastern city of Dhahran.
Aramco had initially been expected to sell a total of five per cent on two exchanges, with a first listing of two per cent on the Tadawul Saudi bourse followed by a three per cent listing on an overseas exchange.
The company made no mention Sunday of a foreign listing but it did say that the Riyadh offering was open to institutional investors as well as Saudi individuals, foreigners resident in the kingdom and other Gulf citizens.