OPIS chief oil analyst Tom Kloza discusses Iran's discovery of a new oil field, how large recently discovered oil fields will make 2020 a cheap year for oil, and the possibility that Iran announces its discovery to undermine the Saudi Aramco IPO.  By JON GAMBRELL and MALAK HARB Associated Press
DUBAI, United Arab Emirates (AP) – Saudi Arabia's state-owned oil giant Aramco announced on Sunday that it will sell a 1.5% stake in the company as it appears to raise as much as $ 25.6 billion from sales.
The recently released figures also revealed a valuation for the company that was between $ 1
.6 trillion and $ 1.7 trillion, a figure that fell below the $ 2 trillion mark Crown Prince Mohammed bin Salman had sought.
a 1.5% relocation could raise between $ 24 and $ 25.6 billion to help the Saudi economy. Saudi Aramco announced that it will hold 200 billion ordinary shares, sell 1.5%, or 3 billion shares.
Aramco set a stock price of 30 to 32 Saudi riyals, or $ 8 to $ 8.50 per share for investors.
WITH ARAMCO IPO APPROVAL, CHINA COZIES TO SAUDIS
The company sells 0.5% to individual investors, which will include Saudi Arabians, Saudi Arabia and Gulf Arab nationals, and 1 % to institutional investors, which may include major Chinese and Russian buyers.
A man walks near a connection to Saudi Aramco in Jeddah, Saudi Arabia, Sunday, November 3, 2019. (AP Photo / Amr Nabil)
Aramco announces the final price for the stock when the book-building period ends on December 5. Trading with the local Tadawul exchange in Riyadh is expected to happen sometime in mid-December.
The long-awaited sale of a sliver by the company has generated global buzz because it may turn into the world's largest I first public offering, surpassing record holder Alibaba whose stock exchange raised $ 21.8 billion on its first trading day in 2014.  Saudi Aramco is the Kingdom's oil and gas producer, pumping more than 10 million barrels of crude oil a day, or about 10% of global demand. The oil and gas company netted $ 111 billion last year, more than Apple, Royal Dutch Shell and Exxon Mobil combined.
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The Kingdom's plan to sell parts of the company is part of a major economic overhaul aimed at increasing new revenue streams for the oil dependent country, especially As oil prices struggle to reach the $ 75 to $ 80 price range per barrel analysts say is necessary to balance Saudi Arabia's budget. Burnt crude trades for just over $ 63 a barrel.
FILE – In this September 20, 2019, file photo, taken during a tour organized by the Saudi Ministry of Information, workers are fixing the damage in Aramco's oil separator at the processing plant following a recent September 14 attack in Abqaiq, near Dammam in Kingdom E
Prince Mohammed has said that listing Aramco is a way for the kingdom to raise capital for the country's sovereign wealth fund, which will then use that revenue to develop new cities and lucrative projects across Saudi Arabia.
Despite Aramco's profitability, the state control of the company carries a number of risks to investors.
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Two major Aramco treatment sites were targeted by rockets and missiles in September, an attack claimed by Iran-backed Houthi insurgents in neighboring Yemen, but as Saudi Arabia blamed Iran for its regional enemy. The government also sets oil production levels, which directly affect Aramco's production.
Associated Press author Aya Batrawy of Dubai, United Arab Emirates, contributed to this report.