Saudi Arabia's state-owned oil company said the offering period would begin on November 17 and end on December 4. It will price its shares on December 5, with trading on the Saudi-based Tadavul Stock Exchange, which is expected to begin in mid-December, according to its prospectus.
Public offering may be the greatest in history. Aramco has huge reserves of oil and massive daily production. He owns a monopoly in Saudi Arabia, the largest exporter of crude in the world. The company reported a profit of $ 68 billion for the first nine months of this year, a decrease of 18% over the same period in 201
8. Profit for the whole of 2018 is $ 111 billion.
The prospectus does not say how much of the company will be floating, but he specified that up to 0.5% of the shares will be sold to individual investors. There is one class of ordinary shares and a share entitles its holder to one vote. Each shareholder has the right to attend and vote at the general meetings.
The company will not be able to list additional shares six months after the start of trading. All necessary regulatory and corporate approvals required for the offering are secured for the IPO.
Details of the long-awaited IPO, such as low oil prices, the climate crisis and geopolitical risk, have caused skepticism among international investors. [SaobshtavasecheprestolonaslednikatMohamedbinSalmanepoiskalotsenkanaAramkoblizo2trilionadolaraNomodelupravlyavanotPalissyAdvisorsinvestitsionno-konsultantskafirmasassedalishtevLondonopredelyastoynosttanaAramcosamona1triliondolara Aramco may need to rely heavily on wealthy local families, sympathetic state funds for wealth or large customers such as China who registers for shares.
There is also an increasing expectation that Aramco will have to sweeten its dividend to get more global investors in the door. The company is committed to a $ 75 billion annual dividend by 2024. What investment could come from these payments could compete with ExxonMobil ( XOM ) and and Dutch Shell
( RDSA ) according to Aramco's score. But Saudi Arabia may need to invest more to increase its interest in partial privatization.