• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 16 hours Satellite Moons to Replace Streetlamps?!
  • 1 day US top CEO's are spending their own money on the midterm elections
  • 10 hours EU to Splash Billions on Battery Factories
  • 14 hours U.S. Shale Oil Debt: Deep the Denial
  • 22 hours The Balkans Are Coming Apart at the Seams Again
  • 6 hours Owning stocks long-term low risk?
  • 10 hours The Dirt on Clean Electric Cars
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 1 day Uber IPO Proposals Value Company at $120 Billion
  • 24 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 1 day A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 5 hours The end of "King Coal" in the Wales
Global Economy Throwing Up Red Flags For Oil

Global Economy Throwing Up Red Flags For Oil

Investors are feeling increasingly gloomy…

Oil Prices Under Pressure As U.S. Shale Supply Soars

Oil Prices Under Pressure As U.S. Shale Supply Soars

Continued production growth in the…

Saudi Arabia Considers Selling Cheap Aramco Shares To Locals

Aramco Oil

Oil giant Saudi Aramco is reportedly considering offering shares to citizens of Saudi Arabia as it prepares for an initial public offering that could be the biggest the world has ever seen.

Quoting sources ‘familiar with the matter’, Bloomberg reported that Aramco has been talking about how to structure the IPO so that Saudi retail investors could get in on the deal cheaper than through international exchanges.

No details on the local shares structure have been released, nor has Aramco commented on the plan officially.

Bloomberg notes that the Kingdom has traditionally offered shares in government-owned companies for about US$2.67 each in an effort to redistribute wealth among the local population.

A final decision on the share pricing has also not been made yet. Aramco could be valued at more than US$2 trillion in the sale.

Last week, Reuters reported that Saudi officials were debating whether Aramco should be listed as an industrial conglomerate or a specialized international oil company. Reuters quoted an anonymous source as saying that the choice is between making Aramco a pure oil and gas company or a conglomerate and expand its role in petrochemicals and other sectors.

Senior-level officials are now concerned with the complications this would create in valuing the state-run corporation ahead of its partial sale.

Related: Biggest Gasoline Glut In 27 Years Could Crash Oil Markets

Under consideration will be Aramco venues listed in the U.S., the UK and Asia. Earlier this week, the Wall Street Journal said that the New York Stock Exchange was the favorite for the Aramco listing. London and Toronto’s exchanges are also being considered, but with less zeal, the Journal said, citing anonymous sources.

As far as Asia is concerned, the Saudis are said to be in talks with stock exchanges, but WSJ predicts that they are not likely to do an IPO there.

The Aramco IPO will potentially raise billions of dollars to support the Kingdom as it transitions from an energy dependent economy to one with more diverse prospects by the year 2030.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News