Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

World’s most profitable company set to go public after Saudi crown prince gives final nod – media

World’s most profitable company set to go public after Saudi crown prince gives final nod – media

Saudi Crown Prince Mohammed bin Salman has greenlighted the initial public offering (IPO) of state oil giant Aramco. It could set a new record if the company’s ambitious valuation is achieved.
The final decision was made during a meeting on Friday, as bin Salman, commonly known as MbS, concluded that there is enough support from local investors for Aramco’s long-awaited stock market debut, Reuters and Bloomberg reported, citing sources. The official statement on the IPO launch is expected on Sunday, when the new trading week starts at the Saudi stock exchange.

Only a small portion of the company – a total of five percent – is expected to be auctioned off. It will initially be listed on the domestic market before international sales are expected to start.

Saudi Aramco reportedly wants to achieve a $2 trillion valuation – a target considered too ambitious by some. However, the valuation could end up at around $1.5 trillion, according to Reuters sources familiar with the matter. In a bid to attract more investors, the oil giant reportedly plans to pay $75 billion in dividends in 2020 and guarantees that they will not go down for the next four years no matter what happens to crude prices.

While Aramco officials have been in talks with institutional investors around the world, banks are reportedly competing for a role in the deal. More than 20 lenders stepped in, including Citigroup, Goldman Sachs Group, and JPMorgan Chase & Co.

Despite investor interest in the IPO, Aramco will still need money from the wealthiest Saudi families, many of whom were targeted in the 2017 campaign against corruption, which saw Riyadh’s Ritz-Carlton Hotel turned into a prison for royal elites accused by the government of corruption.

The state-owned energy giant initially floated the idea of going public in 2016, but the IPO was subsequently postponed. Last year, MbS vowed that the IPO for Aramco will happen between late 2020 and early 2021.

After a drone attack on the company’s oil processing facilities in September, it was feared that the IPO listing would be delayed. In October, the Financial Times reported that the oil giant wanted to assure its investors first and present its quarterly report to show that the strikes did not have a significant effect on production capabilities.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
×