Aramco mulls discounted shares

Saudi Arabia plans share sale as part of Crown Prince’s target for sovereign wealth fund

Saudi Arabian Oil Co, gearing up for what may be the world’s biggest initial public offering (IPO), is considering offering discounted shares to the kingdom’s locals, according to people familiar with the matter.

The oil company has discussed methods to structure the sale so that retail investors in Saudi Arabia can buy shares for less than those buying on international Oil extended gains in its longest rally since the end of December on increasing confidence that Opec’s supply curbs will outweigh a gain in US crude stockpiles. Futures in London added as much as 0.6 per cent, after gaining 1.8 per cent over the past three sessions. The Organisation of Petroleum Exporting Countries is confident members will continue to cut production and reduce global stockpiles, Secretary-General Mohammad Barkindo said. exchanges, the people said, asking not to be identified as the information is private. Aramco, as the company is known, is considering listing venues in the US, UK and Asia, in addition to Riyadh, and is planning to choose local banks to advise on the Saudi listing, the people said.

No final decisions have been made on the share pricing or listing venue, they said. An Aramco spokesman said the company doesn’t comment on rumours or speculation.