According to the people with knowledge of the matter, Saudi Arabia has finalised plans to list Aramco on Tadawul, the Saudi Stock Exchange. The company could become the biggest public company in the world.
As reported by Bloomberg, Michael Klein and JP Morgan & Co [NYSE: JPM] have been appointed to carryout the initial public offer,IPO, which is expected to happen next year. If this pulls through, Saudi Arabia will be selling about 5% shares of Aramco and could rake in at least USD 106 billion for the IPO.
JPMorgan has been working for Saudi Arabia’s Aramco. It was the financial adviser in a USD 10 billion loan taken by Aramco in 2015. Klein is as well a popular adviser to the Aramco and he will be bringing his wealth of experience to the table.
Saudi Arabia, the largest oil producing country with the largest foreign reserve is looking to majorly divest from its reliance on crude oil as a key revenue driver for its economy. The country also plans a USD 1 trillion fund to diversify its economy as oil price shows no sign of critical improvements.
Nigeria was looking towards an agreement by OPEC countries to cut crude oil production but the disagreement between Saudi Arabia and Iran dislocated the entire talks.