UNITED STATES (OBSERVATORY NEWS) — Saudi Arabia’s King Salman bin Abdul Aziz said in a speech to the Shura Council on Wednesday that the IPO of oil giant Aramco would attract investment and create thousands of jobs.
“The announcement of part of Aramco’s shares will allow investors inside and outside the Kingdom to contribute to this world-leading company,” the king said in a Twitter account.
“This will bring investment, create thousands of jobs and boost the size of the Saudi financial market,” he said.
The oil giant said it would sell 1.5 percent of its shares based on a price range of between $ 8 and $ 8.5, meaning the IPO would be worth between $ 24 billion and $ 25.6 billion.
The IPO, in which investors are bidding for shares, began last Sunday and will last until December 4 for corporate and institutional subscribers. The subscription period ends on November 28.
The company, which pumps about 10 percent of the world’s oil per day, will set the final price per share on December 5, with actual trading in the local financial market starting days later.
Aramco was expected to sell 5 percent of its shares in the domestic financial market and an unspecified foreign exchange, but recently announced plans to float outside Saudi Arabia were delayed.
Aramco’s IPO is the cornerstone of the Crown Prince’s 2030 economic reform program. Officials are seeking tens of billions of dollars to fund large-scale projects under this ambitious program.
The offer was delayed several times because of Prince Mohammed bin Salman’s insistence on valuing the company at $ 2 trillion, according to sources familiar with the file.
This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.
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