Dhahran: Saudi Aramco announced Sunday its long-awaited stock market debut in what could be the world's biggest IPO, underpinning Crown Prince Mohammed bin Salman's ambitions to overhaul the kingdom's oil-reliant economy.
After years of delay, Aramco said it plans to sell an unspecified number of shares on the Riyadh stock exchange, calling it a "historic" milestone for the energy giant which pumps 10% of the world's oil.
However, the state firm said there were no current plans for an international listing, indicating that the long-discussed goal for a two-stage IPO including an offering on a foreign bourse had been put aside.
The market launch of the world's most profitable company forms the linchpin of Prince Mohammed's ambitious plans to overhaul the oil-reliant economy, with tens of billions of dollars needed to fund megaprojects and new industries.
With analysts saying that Aramco could be valued at up to $1.7 trillion, the initial public offering (IPO) is potentially the world's biggest, depending on how much of the company it decides to sell.
"Today marks a significant milestone in the history of the company and important progress towards delivering Saudi Vision 2030, the kingdom's blueprint for sustained economic diversification and growth," Aramco chairman Yasir al-Rumayyan said.
"Since its formation, Saudi Aramco has become critical to global energy supply." The final offer price and the number of shares to be sold "will be determined at the end of the book-building period," said the firm, which is headquartered in the eastern city of Dhahran.
Aramco had initially been expected to sell a total of five% on two exchanges, with a first listing of two% on the Tadawul Saudi bourse followed by a three% listing on an overseas exchange.
But amid reports that it was struggling to get big institutional investors on board, Rumayyan indicated that the highly anticipated plans for the second stage had been put aside.
"For the (international) listing part, we will let you know in due course. So far it's only on Tadawul," he told a press conference.
However,the company said the Riyadh offering was open to institutional investors as well as Saudi individuals, foreigners resident in the kingdom and other Gulf citizens.
The company also released its results for the nine months to September, saying net profits came in at $68 billion. Aramco only began releasing interim financial results recently
