Sector News

Report: Aramco shares to be listed in Riyadh later this year

September 12, 2019
Chemical Value Chain

Saudi Arabia plans to list 1% of the shares in state oil company Saudi Aramco on the Riyadh stock exchange before the end of this year, with another 1% to follow in 2020, according to a Reuters report quoting sources familiar with the matter. The remaining 3% of the previously announced 5% offering would be listed on an as-yet undecided overseas exchange in 2020–21.

Saudi officials have yet to confirm plans for an early listing, but both newly appointed energy minister Prince Abdulaziz bin Salman, half-brother to Saudi Crown Prince Mohamed bin Salman; and Aramco CEO Amin Nasser have said this week that the IPO of Aramco shares would happen “very soon.”

Reuters says that Aramco has hired nine banks as joint global coordinators for the IPO, which is expected to be the world’s largest-ever public share offering. Crown Prince Mohamed bin Salman has targeted a $2-trillion valuation for Aramco, with the complete IPO expected to raise $100 billion, but most analysts put the value of the company at about $1.5 trillion. In this case, the initial offering on Riyadh’s Tadawul stock exchange would raise about $15 billion.

According to Reuters, JPMorgan Chase, Morgan Stanley, Bank of America Merrill Lynch, Goldman Sachs, Credit Suisse, Citigroup, HSBC, and two Saudi banks, National Commercial Bank and Samba Financial Group, will lead the IPO. None of these of institutions has confirmed their involvement in the operation.

In an effort to woo prospective investors wary of taking a stake in the world’s biggest oil and gas company, Nasser told the World Energy Congress in Abu Dhabi this week that oil and gas will remain at the heart of the global energy mix for decades and that Aramco is taking major steps to mitigate climate change. He noted that the company’s upstream carbon intensity is one of the world’s lowest, at about 10 kilograms of CO2 per barrel of oil equivalent, and based on third-party verification, its methane intensity in 2018 was 0.06%—one of the lowest in the industry.

Nasser added that Aramco was also investing in technologies to make automotive engines more efficient, to use hydrogen as a fuel in automotive and other applications, to convert more crude to chemicals, and to capture CO2 for oilfield reinjection.

By Natasha Alperowicz

Source: Chemical Week

Related News

May 8, 2021

Nouryon announces intention to spin-out Nobian, its base chemicals business, strengthening focus on key growth end-markets

Chemical Value Chain

The separation is expected to be completed by early Q3, following the receipt of all relevant approvals, including final Board approval. Nouryon intends to reduce its own debt with proceeds received from a planned external financing by Nobian.

May 8, 2021

US Trinseo seeks to build Asian PMMA plant, compounding line

Chemical Value Chain

Trinseo became a producer of the resin when it acquired Arkema’s PMMA business. It announced that it closed on the €1.14bn deal earlier this month.

May 8, 2021

SIG unveils tethered caps for carton packs ahead of EU’s Single-Use Plastics Directive

Chemical Value Chain

As part of the EU’s Single-Use Plastic Directive (SUPD), it will become mandatory for caps and lids to remain attached to all beverage containers up to three liters in capacity from 2024.

Send this to a friend