Saudi oil giant to the stock exchange - may be history's biggest introduction

CMA has not provided any further details about the IPO, but it is expected to be released by mid-December.

Sources tell AFP News Agency that the plan for Saudi Aramco is to sell between 2 and 5 percent of the company on two exchanges, initially 2 percent on the Saudi stock exchange in December. Next year, 3 percent will be sold on a yet-to-be-selected exchange abroad.

The value of those shares has been estimated at at least about USD 40 billion, in the order of SEK 400 billion.

The prospectus is presented, according to sources, on November 10.

However, many experts question the Saudi state's valuation of Saudi Aramco.

Although there is a strong political will in Saudi Arabia to introduce Saudi Aramco on the stock exchange, there are uncertainties that speak against an IPO. There is a great deal of uncertainty in the oil market and the US-China trade war could trigger a recession leading to a lower oil price.

The attack with drones and robots against Saudi oil facilities earlier this fall was one of several setbacks that have helped to reduce interest in investments in Saudi oil production.

An IPO would also cause the stock market to go up and down with the oil price, which could deter companies from other industries. The lack of transparency in the company and Saudi Arabia's poor human rights record can also scare off stakeholders.

However, according to information in international media, investors from China and Russia have shown interest.

The IPO of some of the company's shares is the cornerstone of Saudi Crown Prince Mohammed bin Salman's plan to reduce the country's oil dependency. The oil billions should make it possible to invest in more future-oriented operations.