The Kingdom intends to list one per cent of the state oil giant on the Saudi Stock Exchange before the end of this year and another one per cent in 2020 as initial steps ahead of a public sale of around five per cent of Saudi Aramco.
Tuesday 10, September 2019 BY KUDAKWASHE MUZORIWA
Saudi Arabia plans a gradual listing of Aramco on Tadawul as it finalises the roles banks will play in the initial public offering (IPO) of the world’s biggest oil company.
The state-owned oil company’s flotation, which is expected to be the world’s biggest IPO, is crucial to Crown Prince Mohammed bin Salman’s plans to diversify the Saudi Arabia’s economy away from oil revenues and has increasingly regained momentum over the past few days.
The recently appointed Saudi Energy Minister Prince Abdulaziz bin Salman said that Saudi Arabia was aiming for the IPO as soon as possible.
The Saudis have geared up to fast-track the listing by appointing the head of the Kingdom’s sovereign wealth fund, Yassir al-Rumayyan, to chair and lead an executive committee overseeing the plans.
Additionally, the company is also finalising the list of banks that will manage the deal, with mandates expected in the coming days.
JPMorgan, Morgan Stanley and National Commercial Bank are expected to have lead roles, while Citi, Goldman Sachs, as well as HSBC and Samba Financial Bank, will likely be added to the list of banks managing the transaction, reported Reuters.