By Mohammed Abu Meleeh
Riyadh-Mubasher: Saudi Arabia is considering offering shares in the world's largest oil company Aramco in an initial public offering (IPO).
There are three scenarios that can be drawn for the subscription; the first is that the company will float nearly 5% or 10% of capital, following suit of its major global peers whose values were included in their market capitalisation. However, applying this to Aramco needs amendment to the kingdom's constitution. This scenario requires redefining Aramco's assets, which is preferred by investors.
Chairman Khalid Al-Falih earlier said the government is considering a public listing for Aramco, which could include listing both upstream and downstream assets.
The second scenario is listing an affiliated unit or units, tracing Petro Rabigh, which was announced by Al-Falih.
The third scenario is that the government will establish a new firm, which will undertake some activities of Aramco. In addition, the ownership of subsidiaries will likely be transferred to the new entity.
CEO Amin Al-Nassir said the government will keep a controlling stake in Aramco if it decides to offer shares in public subscription.
Translated by Abdul Maguid Aboshahla
