$2 TRIL­LION: Aramco’s Likely Val­u­a­tion Ahead of Big­gest IPO

The Economic Times - - Commodities Plus -

Glen Carey & Wael Mahdi

Saudi Ara­bia’s Deputy Crown Prince Mo­hammed bin Sal­man said he ex­pects the value of Saudi Ara­bian Oil Co to ex­ceed $2 tril­lion as the king­dom pre­pares to sell part of the com­pany in what could be the world’s largest ini­tial pub­lic of­fer­ing. The val­u­a­tion of the oil pro­ducer known as Saudi Aramco hasn’t been com­pleted, Prince Mo­hammed said in an in­ter­view with Al Ara­biya tele­vi­sion. The govern­ment plans to turn Aramco into a hold­ing com­pany and will sell less than 5% of that en­tity, he said. Aramco units may be of­fered for sale at a sec­ond stage, he said. Prince Mo­hammed is lead­ing the big­gest eco­nomic shakeup since the found­ing of Saudi Ara­bia in1932, with mea­sures that rep­re­sent a rad­i­cal shift for a country built on petrodol­lars. Aramco’s sale is a key part of the “Saudi 2030 Vi­sion” an­nounced on Mon­day to over­haul the econ­omy and re­duce the king­dom’s re­liance on oil. It will help in­crease trans­parency, he said. —Bloomberg

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