Saudi Aramco on Sunday announced its intention to proceed with an initial public offering on the Saudi stock market of Tadawul.
The government intends to sell a portion of its shares in Saudi Aramco, the statement said.
“The price at which all subscribers in the offering will purchase shares the number of shares to be sold, and the percentage of the shares to be sold will be determined at the end of the book-building period,” the company said in a statement.
The IPO prospectus will be issued November 10, sources confirmed to Al Arabiya earlier on Sunday.
The purpose of the IPO, potentially the biggest ever, is to put Saudi Arabia on the fast track to diversifying its economy away from oil and transforming key sectors including mining, healthcare, and tourism in line with its Vision 2030 program.
“Today marks a significant milestone in the history of the company and important progress towards delivering Saudi Vision 2030, the Kingdom’s blueprint for sustained economic diversification and growth,” the company’s Chairman Yasser al-Rumayyan said in a statement.
Saudi Aramco is aiming to list a total of 5 percent to raise $100 billion at a $2 trillion valuation. The company is expected to list a 1 percent stake on Tadawul before 2019 end and another 1 percent in 2020, which will be followed up by an international offering in 2020 or 2021.