Saudi oil giant set to become richest company on earth

Mon, 09 Dec 2019

Saudi oil giant set to become richest company on earth

Lola Evans
18 Nov 2019, 20:57 GMT+10

RIYADH, Saudi Arabia - What is being billed in the Saudi kingdom as the "Sale of the Century" - the initial public offering of shares in Saudi Aramco opened on Sunday.

The Kingdom is selling 3 billion new shares in Aramco, equating to 1.5% of the shares on issue, for between SR30 ($8) and SR32 per share, which will value the company at between $1.6 trillion and $1.7 trillion.

The number is slightly below the $2 trillion the Crown Prince Mohammad bin Salman had touted originally, but nonetheless will make Saudi Aramco the richest company on earth.

A prospectus for the IPO was issued on 9 November, while the offering period for Institutional Subscribers which began on Sunday will close on 4 December.

The offering period for Individual Subscribers which also began on Sunday will end on 28 November.

"My first impression is that the price is a sensible compromise and that it will sell the IPO," Tarek Fadhallah, CEO of Nomura Asset Management in the Middle East, told Arab News on Sunday.

The final price of the shares will be set at the end of the "bookbuild," which will assess the institutional and individual investors bids.

The IPO will raise between $24 billion and $25.6 billion.

Saudi Aramco will assist the bookbuilding process by committing to a purchase of $1 billion in shares, to be set aside for an incentivisation program for employees.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Malaysia Sun.

More Information

23 ℃

Fair in Subang

Southeast Asia

Section

Scores perish in factory blaze in Indian capital

DELHI, India - Dozens of people have died in a fire in a large factory in Delhi.Fire engines streamed through ...

4 men accused of murder and rape of woman in india killed by police

HYDERABAD, India - Four men accused of the rape and murder of a 27-year old woman veterinarian in Hyderabad, India ...

India, Nepal joint military exercise focuses on IED detection

Rupendehi (Nepal), Dec 9 (ANI): The sixth day of joint military exercise between India and Nepal in Nepal's Rupendehi district ...

US: Rally outside Pak embassy against Islamabad sponsored terrorism

Washington [US], Dec 9 (ANI): A rally was organised outside Pakistan embassy in Washington on Sunday to protest against Islamabad ...

Protest outside Nawaz Sharif's London residence

London [UK], Dec 09 (ANI): A group of people on Sunday held protests outside Avenfield flats where former Prime Minister ...

Sri Lanka's Lakmal to miss Pakistan tour after contracting dengue

Colombo - Sri Lankan fast bowler Suranga Lakmal will miss a two-match Test series in Pakistan after contracting dengue fever, ...

Business

Section

Best jobs data in 10 months sparks rally on Wall Street

NEW YORK, New York - A robust jobs market in the U.S. may help the country avoid a recession. Figures ...

China to restrict U.S. diplomats

TEHRAN (Tasnim) - China Friday said it had taken 'reciprocal' measures against US diplomats in the country, who will have ...

Stocks in Asia rise across board, dollar steadies

SYDNEY, Australia - Stocks in Asia made a welcome return to the black on Friday, to close out what has ...

Loan to improve air quality in BeijingTianjinHebei region of China

BEIJING, China - The Asian Development Bank (ADB) has approved a $300 million results-based lending program with private sector involvement ...

Looming new tariffs keep lid on Wall Street

NEW YORK, New York - U.S. stock markets made minor gains on Thursday as speculation over the outcome of trade ...

China-US trade drops by 15.2 pc in 11 months of this year

Beijing [China], Dec 8 (Sputnik/ANI): The bilateral trade between China and the United States decreased by 15.2 per cent in ...

Movie Review

Two Evil Eyes (Due occhi diabolici)