Saudi Arabia’s massive state oil company launched its initial public offering (IPO) on Sunday, publicizing its intention to float on the domestic bourse.
Aramco’s anticipated announcement, the world’s most profitable company, detailed few specifics on the number of shares to be sold.
Bankers estimated that investors will more or less value the company at $1.5 trillion, lower than $2 trillion valuation estimated by Crown Prince Mohammed bin Salman, when he suggested the idea of an IPO four years ago.
“Today is the right opportunity for new investors to reap the benefits of Aramco’s ability to achieve value, and boost it on the long-term,” Aramco Chairman Yasir al-Rumayyan told a news conference at the company’s headquarters in the eastern city of Dhahran.
Reuters reported that the oil company could offer 1%-2% of its shares on the local bourse, raising a huge amount of $20 billion to $40 billion.
The company will meet with investor and will start pitching out their interest and the price range will follow, he explained.
The IPO’s goal is to boost Prince Mohammed’s ambitious economic reform agenda by raisings tens of millions to build non-energy industries and diversify revenue streams.