|Saudi Aramco IPO starts November 17
Saudi Aramco, the world's biggest oil producer, announced it will float its shares on the Saudi Stock Exchange. Financial analysts around the world anticipated this. It is exciting speculators worldwide. Saudi Aramco will allocate 0.5 per cent of its shares to individual investors. It could be the largest IPO (Initial Public Offering) in history. Investors with deep pockets have until December 4 to snap up shares in the world's most profitable company. The company is valued at up to $2.3 trillion. Its rival, the US oil giant Exxon Mobil, has a valuation of $300 billion.
Saudi Aramco's CEO told reporters that the company's IPO will help diversify Saudi Arabia's economy. Further share offerings may take place later on global stock exchanges. Saudi Arabia is heavily reliant on oil. It needs other areas of growth. The IPO is part of a plan to reform the kingdom's economy. This plan is the idea of Saudi's Crown Prince Mohammed bin Salman. He hopes it will boost many areas of the economy and society. The Crown Prince is heading the development of a range of non-oil industries, like healthcare, mining and tourism.