+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

London could get a slice of Saudi Arabia's record-breaking $2.5 trillion stock market listing

May 9, 2016, 13:35 IST

Saudi Aramco President and Chief Executive Khalid A. Al-Falih, who has just been appointed Saudi Arabia's new oil minister.REUTERS/Susan Baaghil/File Photo

Saudia Arabia is planning a three-way listing that includes London for its state-owned oil company Saudi Aramco, according to the Telegraph.

Advertisement

The paper's well-connected international business editor Ambrose Evans-Pritchard reports that the $2.5 trillion oil giant will list shares in London, Hong Kong, and New York. It follows signals from an oil-ministry adviser last month that all three options were on the table.

He also reports that the Saudis are trying to convince international oil giants ExxonMobil, China's Sinopec, and BP to take strategic stakes in the listing, offering them long-term access to deals in exchange.

Aramco is the biggest oil company in the world, controlling around 10% of the world's oil output. Its record-breaking stock market listing is expected to value the company at $2.5 trillion and is scheduled for either next year or 2018.

Prince Mohammad bin Salman, the favoured son of King Salman who has established himself as the effective ruler of the Kingdom, says Aramco will sell 5% of its equity, valuing the shares at $100bn (£70bn) to $150bn. He surprised the world by revealing plans for the sale in an interview with the Economist in January.

Advertisement

The proceeds of the sale will be invested in diversifying Saudi Arabia away from oil, as part of the country's Vision 2030.

As well as privatising part of Aramco, Saudi Arabia has also named its first new oil minister in 20 years as part of reforms aimed at achieving Vision 2030. Khalid al-Falih, chairman of the state-owned oil company Saudi Aramco, has taken up the role. He is an ally of Prince Salman and is said to favour reform.

NOW WATCH: We tested an economic theory by trying to buy people's lottery tickets for much more than they paid

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article