Saudi state-owned oil company Saudi Aramco on Thursday said that it would stick to the previously announced $1.71 trillion valuation ahead of the widely anticipated IPO. The company is not only thought to be the world’s most profitable (at least among publicly listed companies and those preparing to be listed), its IPO is also on track to be the biggest the world has ever seen. Saudi Aramco said it would sell 1.5 percent of the company in the IPO, the equivalent of around $25.6 billion.
That would be more than the world’s biggest IPO to-date, the public offering of Chinese tech giant Alibaba on the New York Stock Exchange in 2014, which brought in $25 billion.
It is already Saudi Aramco’s second attempt at an IPO. In 2018, officials even discussed to sell 5 percent of the company’s shares. But the attempt was ultimately cancelled amidst recovering oil prices taking the pressure of the kingdom momentarily.
The public offering is part of a larger plan to reduce Saudi Arabia’s dependence on oil. Crown Prince Mohammad bin Salman’s “Vision 2030” economic reform plan is looking to invest the money raised through the IPO in diversifying the country’s economy.