Saudi Arabia Aramco has revealed that it is organizing the largest-ever stock market listing, which could see the State-owned Saudi Arabian company valued at around £1.9 trillion.
The announcement was made at the World Economic Forum in Davos and if the plan comes to fruition, it could be a major boost to Britain following the uncertainty of Brexit.
According to Saudi Aramco’s Chief Executive, Amin Nasser, the company is “serious in considering all stock markets, including New York, London, Hong Kong and others”.
Saudi Arabia intends to sell a five percent stake in Amarco – probably in 2018 – although it has said that the number of its shares made available for sale could rise.
A five percent stake is valued at £95 billion and rules in the City of London dictate that at least 25 percent of a corporation’s stock has to be sold to investors. Addressing this point, Mr. Nasser dropped a hint about possible deal, saying:
“It’s true London’s stock exchange requires 25 per cent as a minimum but these are details that are discussed with Britain, and Aramco is a big company.”
Anyone who is fortunate enough to invest in Saudi Amarco stocks could find themselves on to a winner, as global oil prices have rallied recently, due to an agreement between Organization of Petroleum Exporting Countries members, and some prominent non-members, to curb production levels. This has already provided a boost for companies like ExxonMobil, which produces, Mobil DTE Light, and many analysts are confident that the benefits will continue well into 2017.
