Next Sunday, the subscription period for shares of the Saudi Arabian energy group Saudi Aramco is set to begin. One of the biggest IPOs of all time is expected.
According to the prospectus, 0.5 percent of the shares are to be sold to private investors. You can probably subscribe for the shares from 17 to 28 November. The quantity to be sold to institutional investors will be set at a later date. They have until 4 December time for their order. This is evident from the stock market prospectus, which the state-owned company published late Saturday evening.
A week earlier, Saudi Arabia's Financial Market Authority (CMA) had granted approval for the move it had been aiming for about three years. Saudi Aramco is the world's largest oil producing company and is considered one of the most profitable companies in the world.
Saudi Arabia wants to reduce dependence on the oil business
Estimates of the extent of the IPO vary widely. Crown Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia, had hoped for a total valuation of the company of more than two trillion dollars. By contrast, analysts assume a maximum of $ 1.5 trillion. A share of one percent would be worth 15 billion dollars.
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With the hoped-for billions in revenues from the IPO, the Kingdom wants to make itself independent of the oil and gas business. The money is to be invested in other economic sectors.
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The news channel Al-Arabija, funded by Saudi Arabia, has recently reported, citing insiders, that Tadawul, the Saudi Arabian stock exchange, will initially list one percent of its shares by the end of the year and another one percent in 2020. In 2020 or 2021 an international offer should follow.
