Representatives of Saudi Aramco (the national petroleum and natural gas company of the Kingdom of Saudi Arabia) have officially released a statement. Thus, it became known that the company was ready for an IPO. The shares will be offered on the Saudi Stock Exchange Tadawul.
But the public is not yet aware of the offering price as well as of the final number of the shares. The company will make a final determination on this question when they finish collecting applications for participation. Individual investors with citizenship or permanent residence of Saudi Arabia, citizens of Gulf Cooperation Council countries, as well as institutional investors will be able to take part in the initial offering. By the way, the procedure for obtaining the status of a qualified investor has been greatly simplified. This was done in order to attract foreign companies to participate in the IPO.
Saudi Aramco has engaged a large-scale international team to organize the process; Citigroup, Credit Suisse, Goldman Sachs, HSBC Saudi Arabia, JP Morgan, Morgan Stanley, Merrill Lynch and Samba Capital will become the global coordinators.
Credit Agricole, Societe Generale, UBS, BNP Paribas, Deutsche Bank, First Abu Dhabi Bank, Mizuho, RBC Europe and others will organize the IPO outside the “Land of Two Shrines”.
Saudi Aramco IPO will obviously become the largest in the entire history of financial markets. The oil and gas giant will be able to attract about $ 40 billion if it places only 2% of the shares in the first phase.
Last year Saudi Aramco reported on the net income of $ 111 billion. The company’s net profit for the first nine months of this year is $ 68 billion; the revenue is $ 244 billion.
Collection of applications from investors will start on December 4; the bidding process will begin a week later.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group