Aramco is planning to go public, and it has long been talked about it. But when will Aramco be listed on an international stock exchange? The FT stated that advisors are struggling to arrive at the $2 trillion valuation sought by Saudi`s crown prince, Mohammed bin Salman.
Aramco (formerly Arabian-American Oil Company) is the worlds biggest oil producer. Its market value has been estimated at about $2 trillion, making it the most valuable company in the world.
Aramco is one of the largest companies in the world by revenue. Aramco has both the world`s second-largest crude oil reserves, at more than 260 billion barrels, and second-largest daily oil production.
Aramco is owned by Saudi Arabian government and have about 65,266 (2016) employees. Their revenue in 2011 was $311 billion. Its 2013 crude oil production was 3,4 billion barrels, and it manages over one hundred oil and gas fields in Saudi Arabia, including 288,4 trillion standard cubic feet (scf) of natural gas reserves.
The company was founded in 1933 as California-Arabian Standard Oil Company. Ten years later they changed the name to Arabian-American Oil Company, and in 1988 they changed to Saudi Arabian Oil Company/Saudi Aramco.
If the right price for Aramco is $2 trillion, it is more than 6 times the value of Exxon Mobil. But Saudi Arabian government is not planning to sell everything. «Only» 5 percent of Aramco will be listed on the stock exchange.
Aramco has made all the preparations for the IPO to take place this year, but it seems like it could be delayed. Maybe next year will be the right moment to enter the market.
Aramcos valuation of $2 trillion is more than Exxon, Shell, BP and Chevron combined, and proposed $100 billion sale dwarfs Alibabas record $25 billion offer.
According to FT, people briefed on the negotiations say London was a prime contender to land the actual listing. The battle between where Aramco`s stock would list is seen as a horse race between the New York Stock Exchange and the London Stock Exchange.
Saudi Aramco are looking at New York, London and other exchanges around the world.
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Ket Garden
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