Aramco confirms it's studying IPO options

Saudi Arabia's state oil company, Aramco, confirmed 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 its shares and/or the listing of a bundle of its downstream subsidiaries.

The statement followed reports on Thursday that it was considering an initial public offering.

Aramco – the world’s largest producer of crude oil – said once the study of the options is complete, the findings will be presented to the board of directors, which will make its recommendations to the Saudi Aramco Supreme Council.

The company said the proposal was consistent “with the broad and progressive direction pursued by the Kingdom for reforms, including privatisation in various sectors of the Saudi economy and deregulation of markets” which it strongly supports.

It emphasised that the process will strengthen its focus on the 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.”