ENERGY

Aramco to list on the Tadawul on December 11: Sources

Saudi Aramco is the world's largest oil company. (File photo: Reuters)

Saudi Aramco will list on the Saudi Stock Exchange (Tadawul) on December 11, Al Arabiya sources confirmed.

Saudi Capital Markets Authority's announcement of the intention to float the initial public offering (IPO) will take place on November 3. 

Pricing will start on November 17 with a final price for the float expected to be announced on December 4.

Trading on the Tadawul will then begin on December 11, confirmed Al Arabiya's sources.

The news comes from the Future Investment Initiative in Riyadh, where Al Arabiya spoke to sources with knowledge of the matter.

The Aramco IPO is a cornerstone of Saudi Arabia’s Vision 2030 plan, which aims to wean the Kingdom off its reliance on oil to diversify the economy.

It aims to raise up to $100 billion from the IPO of a five percent stake of the company, based on a $2 trillion valuation. This valuation could make it the most valuable company in the world. This valuation would put Aramco at a staggering 400 percent greater than the current largest IPO of Ali Baba, which happened in 2014.

In September, Public Investment Fund (PIF) Governor and Aramco Chairman Yassir al-Rumayyan had said that the IPO would not be delayed and could occur anytime within the next 12 months.

The purpose of the IPO 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 Vision 2030.

“If Aramco is not put for IPO, it means it will take us 40-50 years to develop the mining sector. It will take us 40 years until we develop the local product and it will take us long years to develop logistical services, just like we wasted 40 years in the past while trying to develop these sectors,” Crown Prince Mohammed bin Salman said in an interview broadcast on Al Arabiya back in 2017.

Al Arabiya TV contributed to this article.

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Last Update: Tuesday, 29 October 2019 KSA 19:18 - GMT 16:18
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