Saudi Aramco announces intention to float IPO on Tadawul exchange
World’s largest oil producer’s IPO application has met the legal requirements of the kingdom’s capital market authority (CMA)
The world’s largest oil producer Saudi Aramco, which is fully owned by the government of Saudi Arabia, announced its intention to float its initial public offering (IPO) on Riyadh's domestic stock exchange (Tadawul) after the kingdom’s Capital Market Authority (CMA) approved its IPO application.
According to Wam, the final offer price – the price at which subscribers can purchase shares – will be determined at the end of the book-building period. The government’s sale of a portion its Saudi Aramco shares of Saudi Aramco will comprise existing shares.
Saudi-owned broadcaster Al Arabiya reported that Saudi Aramco was aiming to list a total of 5% to raise $100bn (SAR374.8bn) at a $2tn (SAR7.5tn) valuation.
Commenting on the milestone, chairman of the board of directors at Saudi Aramco, and governor of the Public Investment Fund (PIF), Yasir Othman Al Rumayyan, said: “The company has a strong track record of creating value for its current shareholder, the government. I look forward to welcoming new shareholders who, I am confident, will benefit from the company’s reliability and continued growth.”
The Capital Market Authority (CMA) stated that its announcement was merely an approval of the application's legal requirements and should not be considered as a recommendation to subscribe to the offering.