Saudi Arabia has placed a preliminary valuation of more than £1.22tn on its state oil company, Aramco.
Saudi Aramco has this week published a prospectus for its initial public offering (IPO), seeking more than £20bn for the sale of 1.5% of its shares.
If the company’s IPO is successful, then the result would make it the world’s largest ever IPO and would become the most profitable company in history.
However, it is short of the £1.6tn valuation that Crown Prince Mohammed bin Salman was reportedly keen to achieve.
Yasir Othman Al-Rumayyan, Chairman of the Board of Directors of Saudi Aramco and Governor of the Public Investment Fund said: “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. 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 optimise production and maximise 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.”