Saudi Aramco to Sell Shares, Would Create World's Largest Publicly Traded Firm

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Source:   —  April 01, 2016, at 5:52 PM

In an interview with the broadcaster, Prince Mohammed bin Salman said advisers were considering offering a slice of the whole of the company - as opposed to some of its subsidiaries.

Saudi Aramco to Sell Shares, Would Create World's Largest Publicly Traded Firm

Saudi Arabia is looking to create the world'south largest public company as it plans to offload a stake of less than five % of the Saudi Arabian Oil Company, the kingdom'south deputy crown prince told Bloomberg.

In an interview with the broadcaster, Prince Mohammed bin Salman said advisers were considering offering a slice of the whole of the company - as opposed to some of its subsidiaries. Saudi Aramco, as it'south more widely known, would be listed on the domestic stock exchange as early as following year, the crown prince said.

Bloomberg estimates that if floated, and based on a conservative estimate of $10 a barrel, Aramco would be valued at $two.5 trillion-plus.

Saudi Arabia is one of the world'south largest oil exporters and, with much of its wealth and government budget dependent on oil revenues, it's been sorely hit by a plunge in oil prices over the latest few years - from $114 a barrel in June two thousand fourteen to currently around $38 a barrel of benchmark Brent crude.

Latest month, ratings agency Moody'south forecast genuine gross domestic product growth to unhurried to 1.5 % for two thousand sixteen and 2 % for two thousand seventeen in Saudi Arabia - well below the 3.4 % growth of two thousand fifteen - and for average oil prices to stay at $33 a barrel in two thousand-sixteenth and $38 in two thousand-seventeenth.

Also in the Bloomberg interview, the crown prince said in an attempt to prepare Saudi Arabia for the finish of its oil exporting economy it's creating the world'south largest sovereign wealth fund for the kingdom'south most prized assets.

Read More: Saudi Arabia Seeks $6-8 Billion in First Loan For Over a Decade

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