Saudi Aramco, the world's biggest oil producer, has announced that it will float its shares the Saudi Stock Exchange. The news has been much anticipated financial analysts the world. The flotation is causing a lot excitement speculators worldwide. Saudi Aramco will allocate up to 0.5 per cent of its shares to individual investors. Experts say it could be the largest IPO (Initial Public Offering) history. Investors deep pockets have November 17 and December 4 to snap shares in the world's most profitable company. The company is valued up to $2.3 trillion. In comparison, its rival, the US oil giant Exxon Mobil, has a valuation of a mere $300 billion.
Saudi Aramco President and CEO Amin Nasser told the CNBC news agency last week that the company's IPO will help diversify Saudi Arabia's economy. Further share offerings may take place later stock exchanges Hong Kong, London, New York and Tokyo. Saudi Arabia is heavily reliant oil and needs to seek alternative areas growth. The IPO is part an ambitious plan to reform the kingdom's economy called "Saudi Vision 2030". This is the brainchild Saudi's Crown Prince Mohammed bin Salman. He hopes his initiative will revitalize many aspects the economy and society. The Crown Prince is spearheading the development a range non-oil industries, healthcare, mining and tourism.