delayed its Initial Public Offering which was initially reported to take place
in 2018, Saudi Arabian Oil Co., Saudi Aramco has priced its IPO at 32 riyal (
which is approximately $8.53 per share). This figure puts the company on track
to raise about $25.6 billion. It is reported that the company's public debut
will become the largest on record and will exceed the $25 billion Alibaba
generated when it went public in New York in September 2014. The oil company
saw the price of its shares places the company at a value of $1.7 trillion
which is quite below what the kingdom had targeted.
Saudi Aramco is the world's largest integrated energy firm.
The company has produced 10 million barrels of oil each day during the six
months from January 2019 to June 2019. It has a gross refining capacity of 4.9
million barrels per day. In June 2019, Saudi Aramco reported a slight decline in profits due
to lower oil prices but net income was placed at $46.9 billion.
In the first half of 2019, the company paid over $46 billion
in dividends to its shareholder, the Kingdom of Saudi Arabia as well as a
special dividend of $20 billion. The
Aramco IPO was launched in order to generate funds to help diversify the
kingdom away from it's over-reliance on oil and create jobs for the teaming
growing population. According to Tadawul on its website, Aramco shares will
trade using the symbol 2222 and will have a daily 10% plus or minus fluctuation
limit. “On the first day of trading only, the opening auction for the Saudi
Arabian Oil Company (Saudi Aramco) will be extended for 30 minutes,” it added.
a statement issued on Friday, the Saudi securities exchange's Tadawul said, Saudi Aramco (2222 SE) shares will start trading on
Dec. 11, 2019.
According to CNBC, the United Arab Emirates and Kuwait are
believed to have made substantial commitments to the Saudi project, with the
Kuwait Investment Authority and Abu Dhabi reportedly investing up to $1 billion
and $1.5 billion respectively in the Initial Public Offering.