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 based on sources that the largest IPO of a company 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 putting a definitive decision ahead of them. 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 journalist Jamal Khashoggi is said to have somewhat subsided.
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 Mohammed Bin Salman, the value of the company is a messy 2000 billion dollars.
In view of the financial results published in April, the group would be worth about $ 1200 billion compared to the performance of its peers. Coming week the company reportedly gives insight into the figures.
The plans for the IPO support Saudi Arabia’s strategy to make the economy less dependent on the oil industry. The country wants to invest more money in the development of new industries, also to boost employment. The country also wants to attract foreign investors.