Saudi Aramco plans to pay base dividend of $75 billion in 2020


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Saudi Aramco plans to pay base dividend of $75 billion in 2020

On Monday, the 30th of September 2019, in a corporate overview posted at its website, OPEC-kingpin Saudi Arabia’s state-controlled oil giant, Aramco told that the oil-dependent kingdom had been drawing up a plan to pay a base dividend of as little as $75 billion in 2020, as the company had been paying court to investors for its initial public offering.

In point of fact, Saudi Aramco, which had scrapped a plan earlier this month to list its stock in the United States considering the extent of regulatory risks involved, had been seeking an IPO listing in Saudi Arabia’s domestic market by the year-end, while the oil industry giant and the largest company across the globe in terms of revenue, Saudi Aramco had been seeking an IPO valuation of as much as $2 trillion, which in effect would be the largest IPO ever held.

On top of that, according to Monday’s (September 30th) announcement of the Saudi oil giant, the public listing of Aramco, which had been a part of a broad-based plan of Saudi Crown Prince, Mohammed bin Salman, to diverge Saudi economy by putting an end to the nation’s oil dependency, would involve “a progressive growing dividend on sustainable basis at board discretion,” while the announcement had also involved a “progressive royalty scheme” with a base rate of 15 per cent for oil price up to $70 a barrel, 45 per cent up to $100 per barrel and 80 per cent for a crude price more than $100 a barrel.