Saudi regulator approves Aramco share offer

RIAD: Saudi regulators approved Sunday the request of state energy giant Aramco to make its debut in the stock market, firing the initial weapon against the highly anticipated offer that could be the largest in the world. The Capital Markets Authority did not give details about the Initial Public Offer (IPO), but it is expected to start trading in mid-December.

The market regulator has issued its resolution approving Saudi Arabian Oil Company ( Saudi Aramco ) ... request to register and offer part of its shares, said in a statement on its website.

The sale, which could value the company at up to $ 1.7 trillion, is the key piece of Crown Prince Mohammed bin Salman's plan to modernize the economy and stop relying on a dependence on oil for decades.

Sources close to the IPO told AFP that Aramco is expected to sell a total of five percent in two exchanges, with an initial list of two percent in the Tadawul Saudi stock exchange in December.

This will be followed next year by a three percent quote on a foreign exchange, which has not yet been chosen.

Aramco was expected to launch the first part of the IPO in two stages in October, but the process has been delayed, according to reports, due to the prince's dissatisfaction with the valuation of the company, which did not reach the expected $ 2 billion.