Saudi Aramco's chairman Yasir Al-Rumayyan said on Sunday that the company would launch its initial public offering (IPO) on the Saudi Stock Exchange (Tadawul). "I am honored to announce that Saudi Aramco will become a listed company on the Saudi Stock Exchange," Al-Rumayyan said, adding it would strengthen Tadawul and make Saudi Arabia a foreign investment destination. Al-Rumayyan was speaking after Aramco kick-started its IPO earlier on Sunday, officially announcing its intention to list on the domestic bourse, Tadawul. Al-Rumayyan also said the local listing was a reflection of a strong global position. "Listing Aramco on Tadawul proves its strong position among global markets," he told a news conference. He also said the state oil giant would continue to meet its global oil supply demand after it lists on the Riyadh bourse. The price range of Saudi Aramco IPO will be out in two weeks, Al-Rumayyan added. The IPO prospectus will be issued Nov. 10, sources confirmed to Al Arabiya earlier. "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," Al-Rumayyan said. "Since its formation, Saudi Aramco has become critical to global energy supply. With a focused, long-term strategy and staunch governance, Saudi Aramco demonstrates world-class standards of operational performance and financial discipline. "The company's strategy is underpinned by long-term, exclusive access to the Kingdom's unique hydrocarbon resources, which it manages in order to optimize production and maximize long-term value. At the same time, the company seeks to preserve the low carbon intensity of its crude oil production to demonstrate its ongoing commitment to sustainability. The company has a strong track record of creating value for its current shareholder, the Government. I look forward to welcoming new shareholders who, I am confident, will benefit from the company's reliability and continued growth," he added during the launch. Authorities have openly targeted a $2 trillion valuation, but some analysts and investment banks have predicted a range of $1.2 to $1.5 trillion. Even at the lower-end of this spectrum, the overall 5 percent listing of Aramco will dwarf any other IPO in history. At a $2 trillion valuation the company would raise $100 billion for a 5 percent stake. Aramco was previously expected to list a 1 percent stake on Tadawul in 2019 and another 1 percent in 2020, before an international offering in 2020 or 2021. Al-Rumayyan declined to comment on the company's valuation on Sunday, but said that the percentages of listing domestic, as well as international, have yet to be determined. The company will float 2 percent on the Saudi market as part of its first phase in going public, according to Al Arabiya sources. —SG/Al-Arabiya English
