Saudi Aramco confirms share listing deliberations

Saudi Aramco has confirmed it is considering a stock market flotation in what would probably create the most valuable listed company in the world.

The company says it has been studying various options to allow broad public participation in its equity through the listing in the capital markets of an appropriate percentage of the company’s shares and/or the listing of a bundle its downstream subsidiaries.
Once the study of these various options is complete, the findings will be presented to the company’s board of directors which will make its recommendations to the Saudi Aramco Supreme Council, said a statement from Saudi Aramco.
This proposal is consistent with the broad and progressive direction pursued by the Kingdom for reforms, including privatization in various sectors of the Saudi economy and deregulation of markets, which the Company strongly supports.
Saudi Aramco emphasized that this process will strengthen the company’s focus on its long term vision of becoming the world’s leading energy and chemical enterprise. 
This includes prudently managing the Kingdom’s hydrocarbon resources, adding value across the value chain, reliably meeting its customers’ demand, and meeting its stakeholder and environmental commitments, added the Aramco statement.
On Friday, Financial Times reported that Saudi Aramco is the world’s largest oil producer with output of 10 million barrels a day, and could become the first listed company valued at more than $1 trillion.
Saudi Arabia has 16 percent of the world’s proved oil reserves, at more than 260 billion barrels. 
This is more than 10 times higher than those held by ExxonMobil, stated the FT report. Based on Exxon’s market value of $317 billion, Saudi Aramco could be worth as much as $3 trillion, stated the FT report.
Saudi Arabia is reviewing whether to sell public shares in Aramco, with a decision coming in the next few months, Deputy Crown Prince Mohammed bin Salman told The Economist in a recent interview.
“Personally I’m enthusiastic about this step,” he said. 
“I believe it 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.”