Saudi state oil company Saudi Aramco, the world's largest exporter of crude oil, may make its stock market debut in the short term. The American business newspaper The Wall Street Journal reports on Friday based on sources that the largest IPO could ever take place next year.
There has been a great deal of uncertainty about the plan dating back to 2016, because the Saudis seem to be postponing a final decision. Last year there were rumors that the plug would have been pulled out of the IPO.
The newspaper mentions various reasons for the accelerated roll-out of stock market plans. The markets are currently reacting positively to the company, given the successful placement of bonds earlier this year.
Furthermore, the anger about the murder of Jamal Khashoggi is said to have somewhat subsided. The critical journalist was killed in October in the Saudi consulate in Istanbul.
"Aramco's value is $ 2,000 billion"
Saudi Crown Prince Mohammed Bin Salman is said to have ordered the murder according to various international security forces, but Riyad still denies all involvement.
The company said earlier to strive for a listing in its own country and a listing on an international stock exchange. According to the Saudi crown prince, the value of the company is a messy $ 2,000 billion.
Saudi Arabia wants to be less dependent on oil
In view of the financial results that were published in April, the group would be worth about 1,200 billion dollars compared to the performance of its peers. Coming week the company reportedly gives insight into the figures.
The plans for the IPO support the strategy of Saudi Arabia to make the economy less dependent on the oil industry. The country wants to invest more money in the development of new industries. With this, Saudi Arabia also hopes to boost employment. The country also wants to attract foreign investors.