State-owned oil company Saudi Aramco has announced plans to list on the Riyadh stock exchange in potentially the world's biggest IPO. Saudi Arabia has the cheapest oil fields for extraction and hence generates enormous profits – $46.9bn in the first half of 2019, compared with $5.5bn at the world's largest listed oil company, ExxonMobil. Nevertheless, Crown Prince Mohammad bin Salman wants to diversify his country's economy over the next decade. The kingdom is also looking into a plan that would see it sell off its stake in state-owned energy firm PetroSaudi, which could raise as much as $21bn.
State-owned oil company Saudi Aramco has announced plans to list on the Riyadh stock exchange in potentially the world's biggest IPO. Saudi Arabia has the cheapest oil fields for extraction and hence generates enormous profits – $46.9bn in the first half of 2019, compared with $5.5bn at the world's largest listed oil company, ExxonMobil. Nevertheless, Crown Prince Mohammad bin Salman wants to diversify his country's economy over the next decade. The IPO is expected to comprise 1% to 2% of existing shares valuing the company at about $1.2tn.