The Saudi Arabian crown prince Mohammed bin Salman declared that the country's pretroleum giant will go public in 2021. This announcement settles the projected date of the Initial Public Offering (IPO) of the company, almost two years after it was first announced by the crown prince that Aramco would be turned into a public holding.
The Bloomberg quoted Mohammed bin Salman as, "I believe late 2020, early 2021. The investor will decide the price on the day. I believe it will be above $2 trillion. Because it will be huge." While Mohammed bin Salman's words about the company valuation echoed his earlier assessment, analysts trimmed the valuation and stated that Aramco could have a value of about 1-1.5 trillion US dollars.
The crown prince's intention to make Aramco public is an extension of his intention of diversifying the Saudi Arabian economy through the Saudi Vision 2030. The detailed plan for Saudi Vision 2030 involves the objective of broadening the economic horizons of Saudi Arabia, primarily by leading the country from its conventional outlook as being only an oil-rich economy.
By making Aramco public, Mohammed bin Salman hopes to add around $1 trillion into the Saudi Arabian Public Investment Fund.