The initial public offering (IPO) of Saudi Arabian Oil Co., also known as Saudi Aramco, is ready for the local market and Saudi Arabia is also considering share sales in foreign bourses in London, Hong Kong and New York, according to reports in world media outlets.
The privatization of Aramco comes as part of Saudi Arabia’s economic reforms for its ‘2030 vision’ to generate revenues and reform its economy.
"The work for a potential joint listing would be less on the regulatory side and more on the operational side involving the exchange connecting with other bourses," Mohammed Elkuwaiz, vice chairman of the Capital Markets Authority, the kingdom’s market regulator, was quoted as saying.
Saudi Aramco, which has reserves of about 260 billion barrels, is planning to sell shares of its entire business. The company's plan to sell a stake of about 5 percent could value the world's biggest oil company in trillions of dollars.
Through this process, the kingdom aims to become a "global investment powerhouse" and transform the country's unique geographical location into a global hub.
Elkuwaiz said both the Aramco IPO and the activities of the Saudi market to attract more foreign investors are running in parallel.
By Sibel Akbay
Anadolu Agency
sibel.akbay@aa.com.tr