Riyadh:
Saudi
regulators on Sunday approved state energy giant Aramco’s request to make its
stock market debut, firing the starting gun on the highly anticipated offering
which could be the world’s largest.
The Capital Markets Authority did not give any details of the
Initial Public Offering (IPO) but it is expected to begin trading in
mid-December.
The markets regulator “has issued its resolution
approving the Saudi Arabian Oil Company (Saudi Aramco) application for the
registration and offering of part of its shares,” it said in a statement
on its website.
The sale, which could value the company at up to 1.7
trillion, is the linchpin of Crown Prince Mohammed bin Salman’s plan to revamp
the economy and wean it off a decades-long dependence on oil.
Sources close to the IPO have told AFP that Aramco is
expected to sell a total of five percent on two exchanges, with an initial
listing of two percent on the Tadawul Saudi bourse in December. That will be followed next year by a three percent
listing on an overseas exchange, which has yet to be picked.
Aramco was expected to launch the first part of the two-stage
IPO in October, but the process has been delayed, reportedly due to the
prince’s dissatisfaction with the valuation of the firm, which fell short of
the hoped for 2 trillion. (AFP)
