Saudi Aramco will publish its finances ahead of what could be the world’s biggest IPO
Saudi Aramco, which is plotting what is expected to be the world's largest initial public offering (IPO), will publish its annual financial statements before the float in 2018.
The Saudi state-owned company will disclose 2017 annual statements prior to the listing, Bloomberg reported energy minister Khalid Al-Falih said today at a seminar in Riyadh.
“Aramco applies the best international standards in governance and management,” Al-Falih said. “It has advanced technology. All of this qualifies it, at the appropriate time, to publish this information through its IPO programme, and we confirm that the world, without exaggeration, will be amazed.”
Saudi Arabia, the world’s biggest crude exporter, plans to sell less than five percent of the company as part of plans by deputy crown prince Mohammed bin Salman to set up the world’s biggest sovereign wealth fund and reduce the economy’s reliance on oil.
The Dhahran-headquartered firm boasts an average daily crude production of 10.2m barrels per day and has natural gas reserves of 297.6 trillion standard cubic feet. Saudis have estimated the entire company to be worth more than $2 trillion (£1.6 trillion).
A Saudi Aramco float has been in talks for more than a year, but because of the company's massive size, it is looking to sell its shares in at least two or three stock exchanges, with London, New York, Hong Kong and Japan thought to be in the running to stage the listing.
“Even if we sold five percent, no market in the world can absorb an IPO of this size,” Al-Falih said at the seminar. “Therefore, the intention is for there to be several markets, at least two or three.”
Last week, UK-based consultancy firm Gaffney, Cline & Associates was reportedly hired for work on the IPO.