Saudi Aramco will offer less than 1% of shares to individual investors in IPO

Saudi Aramco will offer less than 1% of shares to individual investors in IPO

(*)(**)(***)(***)(****)Signage of Saudi Aramco’s initial public offering (IPO) is seen during a news conference by the state oil company at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, (*****************************).(*****)(****)Hamad Mohammed | Reuters(*****)(******)(******)(******)(***)(****)(*******)(********)Saudi Aramco will sell up to 0.5% of its shares to individual investors in what could be the largest initial public offering in history.(*****)(****)The world’s largest oil company released its prospectus Saturday, providing further details about its highly anticipated public debut. The process begins Nov. (**************************************) and closes Dec. 4, with a final offer price as well as the number and overall percentage of shares to be sold determined at the end of this period.(*****)(****)The Saudi government will face a lockup period of six months on further sales of shares after Aramco’s public offering. The IPO is being underwritten by (*********)J.P. Morgan(**********), (***********)Goldman Sachs(**********), (************)Citigroup(**********) and (*************)Morgan Stanley(**********), among others.(*****)(****)Aramco announced last Sunday that it plans to float its shares on the Saudi Stock Exchange — known as the Tadawul — in December.(*****)(****)Analysts’ valuations of the company have varied from $1.2 trillion to $2.3 trillion. In comparison, Aramco’s closest U.S. rival, (**************)Exxon Mobil(**********), has a market cap of nearly $(*******************************) billion and (***************)Chevron(**********) is valued at about $(*********************************) billion.(*****)(****)The much-anticipated IPO was first flagged in (******************************) by the government of (****************)Saudi Arabia(**********), and has faced multiple delays, reportedly amid concerns its finances would be publicly scrutinized. (*****************)Drone attacks on its key oil facilities(**********) in September also raised worries about security and threatened to jeopardize its planned listing.(*****)(****)Aramco warned that terrorism and armed conflict could materially impact the market price of its shares.(*****)(******)(***)(****)Aramco President and CEO Amin Nasser told CNBC last week that the company’s public debut will help diversify the kingdom’s economy. The move could also strengthen Saudi Arabia’s stock exchange by drawing domestic and international investment.(*****)(****)There have been reports Aramco may undertake a dual listing. Its chairman, Yasir al-Rumayyan, said at a news conference last week that the international listing would be decided on “going forward.”(*****)(****)Some predicted that between 1% and 2% of the company will be listed domestically, and another part listed on a major international exchange later. Stock exchanges from (******************)New York(**********) and (*******************)London(**********) to (********************)Hong Kong(**********) and (*********************)Tokyo(**********) have all been vying for Aramco’s international debut. The prospectus released Saturday did not address any of these issues(*****)(****)The public listing of Aramco — officially known as the Saudi Arabian Oil Co. — is part of the “(**********************)Saudi Vision (****************************)(**********),” an economic reform plan spearheaded by Saudi Crown Prince Mohammed bin Salman.(*****)(****)The young ruler has ambitious plans to steer the kingdom’s economy away from its heavy reliance on oil, and develop nonoil sectors like tourism, health care and mining.(*****)(****)(***********************)Saudi Arabia has huge o(**********)(************************)il reserves(**********) of more than (********************************) billion barrels. The kingdom is one of the top producers and exporters of petroleum globally, and owns some (*************************************)% of the world’s proven petroleum reserves. The oil and gas sector comprises half the country’s gross domestic product and some (***********************************)% of its export earnings.(*****)(******)(******)(*************************)(**************************)Read More(**********)

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