Saudi Aramco Announces Share Price To Be Revealed December 5
Saudi Aramco has announced that it will release the final price of its shares on December 5, shortly before shares will be traded later that month.
Aramco is the world’s largest oil company and generates much of Saudi Arabia’s revenue. Crown Prince Mohammed bin Salman announced plans to have shares of the oil company traded more than three years ago. Since then, efforts have persisted, leading up to what could possibly be the largest initial public offering in history.
Mohammed bin Salman has claimed that the company will be valued at $2 trillion. However, Bernstein, a Wall Street research firm, has countered that valuation with their own at between $1.2 trillion and $1.5 trillion.
0.5% of the company’s shares will be set aside for individual investors. Shares will be traded on the Saudi stock exchange, called Tadawul. Although prior discussions have highlighted the possibility of shares being traded on the New York and London stock exchange, further details have not been released.
Some are weary of investing in Aramco. The small percentage of shares set aside for individual investors means that they will have little say in the management of the company. Additionally, growing concerns regarding climate change have hurt demand for oil.