• 3 minutes Looming European Gas Crisis in Winter and North African Factor - a must read by Cyril Widdershoven
  • 7 minutes "Biden Targets Another US Pipeline For Shutdown After 'Begging' Saudis For More Oil" - Zero Hedge Monday Nov 8th
  • 12 minutes "UN-Backed Banker Alliance Announces “Green” Plan to Transform the Global Financial System" by Whitney Webb
  • 9 mins Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 14 hours Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
  • 18 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days Building A $2 Billion Subsea Solar Power Cable From Chile To China
  • 3 days Is anything ever sold at break-even ? There is a 100% markup on lipstick but Kuwait can't break-even.
  • 3 days Modest drop in oil price: SPRs vs US crude inventory build
  • 3 days 2019 - Attack on Saudi Oil Facilities.
  • 2 hours NordStream2
  • 3 days Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 5 days Ukrainian Maidan after 8 years
  • 5 days Peak oil - demand vs production
  • 6 days "How the CO2 shortage is impacting the food and drink sector" - Specialty Food Magazine
Oil Nations Are Selling Billions In Green Bonds

Oil Nations Are Selling Billions In Green Bonds

Environmental, social, and governance investing…

U.S. Rig Count Climbs As Oil Prices Crash

U.S. Rig Count Climbs As Oil Prices Crash

The U.S. oil rig count…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Aramco’s 658 Page Prospectus Fails To Answer The $2 Trillion Question

The number of shares, the price and date of the listing remain shrouded in mystery today, even after Saudi Aramco released its long-awaited IPO prospectus.

What the 658-page document does say is that Aramco will list just 0.5 percent of its total stock to individual investors, and that the listing will begin on November 17 and end on December 4. This should imply Aramco shares will start trading on the Tadawul exchange in early December. This is also when Aramco will make public the price per share and the number of shares it will offer up for sale.

Investors, the prospectus also said, have until November 28 to request shares.

The Saudi state oil company has been making strides in its preparation for going public after months of uncertainty and doubts whether it would list at all and if it does, which overseas exchange it will choose. For now, the listing will be on Tadawul only, with the international one planned for a few years later, according to comments from Riyadh officials.

The 0.5 percent Aramco will offer in early December as per its schedule is a small portion of the 5 percent it plans to list, meaning the bulk of the shares will target institutional investors. At one point, there was even talk of doubling this to 10 percent, possibly based on doubts about the $2-trillion valuation of the company that Crown Prince Mohammed is aiming for. Related: Why Qatar Is Better Off Without OPEC

Calculations of Aramco’s value from various banks put it in a rather large range of between $1.2 trillion and $2.3 trillion.

Last month, Aramco reported a net profit of $68 billion for the first nine months of the year at the same time as it announced an intention to float on the local stock exchange. In the same statement, the company said it planned to distribute $75 billion in dividends next year.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on November 11 2019 said:
    Aramco’s 658-page prospectus has failed completely to answer the one question would-be-investors were waiting for, namely the basis on which the $2-trillion valuation of Aramco was calculated and therefore the real size of Saudi proven oil reserves.

    Saudi Arabia will never submit its reserves for an international and independent audit now or ever and the International IPO of Saudi Aramco will never see the light of day now or ever either and therein lies the problem for investors.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News