Saudi Oil Giant Aramco Announces Long-Awaited IPO

November 17, 2019

Saudi Arabian oil company Aramco launched its initial public offering (IPO) on Sunday, launching the largest initial public offering in history.

After obtaining approval from the market regulator, the company announced plans to sell unspecified percentages of shares on the Saudi Stock Exchange Tadawul.

The New York Times reported that Yasir al-Rumayyan, chairman of Aramco, said the announcement represented “important progress” toward “a blueprint for sustained economic diversification and growth in the Kingdom of Saudi Arabia.”

Aramco is considered to be the most profitable company in the world, accounting for about one-tenth of global oil production. Last year, the company posted a net profit of $11 billion, which is higher than the net income of Apple, Google and its rival ExxonMobil.

Saudi Crown Prince Mohammed bin Salman first announced the company’s listing plan, when Saudi Crown Prince Mohammed bin Salman said the company’s market capitalization was about $2 trillion. The initial public offering will take place in 2017.