Saudi Aramco announces kick-start of what could be the world’s biggest IPO

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Saudi Aramco announces kick-start of what could be the world’s biggest IPO

On Sunday, the 3rd of November 2019, the OPEC-kingpin Saudi’s state-owned oil giant, Aramco, world’s biggest company by revenue according to unaudited data, had finally announced a kickstart of its Initial Public Offerings (IPO) for domestic market, broadcasting an ambitious intention to float its stocks in local market what could be the world’s biggest public listing as the resource-rich kingdom had long been planning to diversify its oil-dependent economy.

Meanwhile, the Saudi Aramco had kick-started its Initial Public Offering in the wake of a withering oil industry backdrop while debates continued on its planned valuation of $2 trillion over a lower crude oil price amid a stringent US crude inventory build.

In point of fact, as disputes with potential Aramco investors had been casting a cloudiness over the IPO valuation of $2 trillion Aramco sought earlier, multiple industry analysts, US crude oil price must stay above $60 per barrel to allow Saudi Aramco to lay off a dividend of $75 billion by next year as promised.

Nonetheless, despite a number of factors fetching fresh qualms on Aramco valuation, in its long-awaited IPO announcement on Sunday (November 3rd), Saudi Aramco had delivered little details on IPO pricing, numbers of shares to be sold and an exact launch date, while bankers overseeing Aramco IPO were quoted saying on condition of anonymity late on Sunday (November 3rd) that the investors would more likely to bank on a valuation of $1.5 trillion, much-lower than a $2 trillion valuation sought by the Saudi Crown Prince Mohammed bin Salman.