The Capital Market Authority of Saudi Arabia said in a statement on Sunday that it has approved an application to list shares in Saudi Aramco. It did not say when the long-awaited IPO should take place or give details of the size.
Aramco has huge oil reserves and massive daily production. It has a monopoly in Saudi Arabia, the world's largest exporter of crude oil.
public offer is part of Saudi Crown Prince Mohammed bin Salman's plan to reclaim his countries of oil and develop other areas of the economy. But getting the huge stock exchange listing off the ground has been a difficult process full of false starts.
The Saudi government originally discussed floating 5% of the company in 2018 in a deal that would raise as much as $ 100 billion. It looked at international markets such as New York or London as well as Riyadh.
But the project was shelved amid concerns about legal complications in the United States, as well as doubts about the $ 2 trillion valuation that bin Salman sought – only to be revived earlier this year after Aramco pulled off a very successful international bond sale .
Estimates of how much the flow will increase vary widely. Bin Salman reportedly wants the deal to value Aramco at $ 2 trillion; analysts don't tie it to over $ 1.5 trillion. Selling even 1% of the company at the bottom of that scale would fetch $ 15 billion, while selling 2% at the top could generate $ 40 billion, and the surplus record IPO of $ 25 billion Alibaba ( BABA ) in 2014.
– Sugam Pokharel contributed reporting.