Saudi Aramco’s forthcoming listing on the local stock market could help strengthen the government’s net asset position, with the proceeds potentially raising the kingdom’s longer-term economic growth, S&P Global Ratings said.
The world’s most profitable company starts a share sale on November 17 in an initial public offering (IPO) that may raise between $20 billion and $40 billion.
“The bulk of the funds raised will go to the government or the Public Investment Fund, potentially adding to the sovereign’s already strong fiscal net asset position of 72.7 percent of GDP,” S&P said in a note.
“Productively deployed, we believe the assets could also help maintain growth potential through our three-year ratings horizon,” it added.
Also Read
-
Russia-China Fund aims to lure Chinese investors for Saudi Aramco IPO
The Russia-China Investment Fund (RCIF) is working to lure Chinese investors for Saudi Aramco’s upcoming initial public offering (IPO) as the ... Energy -
Saudi Aramco to supply LNG to Bangladesh as part of power deal
Saudi Arabian state energy company Aramco plans to supply liquefied natural gas (LNG) to Bangladesh as part of a tentative $3 billion deal signed in ... Energy -
Saudi Aramco’s $2 trillion valuation still possible, says Al Jazira banker
A $2 trillion valuation for Saudi Aramco is still possible thanks to overwhelming interest from retail investors in Saudi Arabia and beyond, a bank ... Energy -
Saudi Aramco to announce IPO price range on November 17
Saudi Aramco’s price range for its initial public offering (IPO) will be determined on November 17, while the announcement of the final offer ... Energy
