Saudi Aramco IPO a possibility

Saudi Aramco is considering a potential initial public offering, the national oil company confirmed in an emailed statement to Bloomberg Friday.

The company is examining whether to open a portion of the company to the public or to simply bundle its downstream activities. Following this decision, the proposal will be presented to the board of directors of the company, which will send its recommendations to the company’s Supreme Council.

Muhammad bin Salman, Saudi Arabia’s deputy crown price, stated that a decision would be made within the next couple months in an interview with The Economist. “I believe [the initial public offering] is in the interest of the Saudi market, and it is in the interest of Aramco, and it is for the interest of more transparency, and to counter corruption, if any, that may be circling around Aramco,” he said.

The potential for an initial public listing comes amid oil prices dipping below $35 a barrel and escalating tensions between Saudi Arabia and Iran.

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Image courtesy of Saudi Aramco