Saudi Aramco has said it plans to proceed with its initial public offering (IPO) by announcing its intention to float on the main market of Tadawul.
News report suggest that it could be the world’s biggest listing as the kingdom seeks to diversify its economy away from oil.
However, the announcement by Aramco offers little detail on the number of shares to be sold, pricing or the date for a launch.
According to Reuters, valuations for the company vary by more than $1 trillion, according to fund managers who have seen banks’ research.
Amin Nasser, president and CEO of Saudi Aramco, says in a statement: ‘Saudi Aramco’s vision is to be the world’s pre-eminent integrated energy and chemicals company. Over the last three years, we were responsible for one in every eight barrels of crude oil produced globally and our proved liquids reserves, at the end of 2018, were five-times larger than the combined proved liquid reserves of the five major IOCs.
‘Building on our position among the world’s least carbon intense sources of crude oil, Saudi Aramco aims to grow its business sustainability by leveraging technology and innovation to lower our climate impact.
‘With a comprehensive and disciplined process for capital expenditures, we seek to maintain a prudent and flexible balance sheet. Our approach delivered higher operating cash flow, higher free cash flow, higher EBIT, higher EBITDA and higher ROACE than each of the five major IOCs in 2018G. We are proud of our many achievements over nearly nine decades and are excited about the prospects ahead.’