Saudi’s Aramco share sale in domestic market

It has recently been announced that for the first time, Saudi Arabia is ready for the initial public offering of Saudi Arabian Oil Co in the domestic market. According to the vice-chairman of the kingdom’s market regulator, there is additional work that will be needed if shares are to be sold in more than one country.

“The only additional precaution that may be needed is certain preparations for a potential joint listing. Most of that work is less on the regulatory side and more on the operational side which is basically the exchange connecting with other exchanges” ,Mohammad Al Kuwaiz of the Capital Markets Authority told reporters at a conference on Tuesday.

Chief Executive Officer Ameen Nasser said in October that Saudi Aramco is looking forward to selling shares on the Saudi stock market. It is also considering foreign bourses in London, New York and Hong Kong. He also added that the world’s biggest oil company- Saudi Aramco plans on selling its shares in the entire business.

On a revenue bases- if Saudi Aramco sells about 5% of share, the company could make trillions of dollars in return.

So far, the kingdom has sold its first international bonds. It raised about $17.5 billion on the biggest-ever issue from an emerging-market nation. The kingdom is currently taking steps in making the Middle East the largest stock market and accessible to foreign investors.

Al Kuwaiz last words on the conference was that both Aramco IPO as well as the activities of the Saudi market are moving in a parallel path and both aims to attract more foreign investors.

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