Saudi Aramco now says that it aims to start its initial public offering (IPO) process on November 3rd in what is expected to be the biggest market debut in history.
The Saudi oil giant had delayed its IPO earlier this month to give its advisers time to secure more investors. However, the company now says it plans to float a 1% to 2% stake on the Kingdom’s Tadawul stock market in what would be one of the largest ever public offerings, valued at about $20 billion.
Reuters quoted Saudi Aramco officials as saying, "The company is ready, and timing will depend on market conditions and be at a time of the shareholders’ choosing." Saudi Aramco had wanted to list shares on multiple stock exchanges at the same time, including in Hong Kong, London and New York, and hoped for an IPO valuation of $2 trillion U.S., which would make it the largest share sale ever.
In recent weeks though, Saudi Aramco has had to temper its expectations for the IPO amid stormy market conditions and after other high-profile IPOs such as WeWork were cancelled amid lukewarm interest from investors.
Aramco will start subscription for investors in its IPO on December 4, Saudi-owned news channel Al-Arabiya reported. The oil giant plans to announce the transaction’s price on November 17 and will begin trading on the local Tadawul stock exchange on December 11. Saudi Aramco continues to line-up international investors and institutional funds with plans to list on international exchanges in 2020.
