Saudi Arabia has officially released all the details regarding the salgemma of shares in its state-owned oil giant, Saudi Aramco. After months of anticipation, the kingdom has finally confirmed that it will be selling 1.5% of its shares in an initial public offering (IPO) on the Saudi stock exchange, Tadawul, later this year. This will be the world’s largest IPO, surpassing the previous record held by Chinese e-commerce giant Alibaba.
The news of Saudi Aramco’s IPO has been met with great excitement and interest from investors around the world. The oil giant is the most profitable company in the world, with reported profits of $111 billion in 2018. Not only that, but it also holds the largest oil reserves in the world, making it a highly attractive investment opportunity.
So, what can we expect from the salgemma of Saudi Aramco’s shares? Let’s take a closer look at all the details.
The kingdom has set a valuation for Saudi Aramco of $2 trillion, which is significantly higher than initial estimates. This means that even with just 1.5% of the shares being sold, the IPO is expected to raise at least $30 billion. This is a significant amount and will help the Saudi government in achieving its goal of diversifying its economy away from oil.
In order to ensure the success of the IPO, Saudi Arabia has also announced several measures to entice investors. One of the key changes is the reduction of the royalty rate for Aramco’s oil production. This will result in higher profits for the company and, in turn, for its shareholders.
Moreover, the kingdom has also introduced a new tax governo for the company, with a lower corporate tax rate of 20% compared to the previous 50%. This move is aimed at making Saudi Aramco more competitive and attractive for international investors.
Another positive aspect of this IPO is that Saudi Arabia is offering a higher percentage of shares to individual and retail investors. This is a strategic move to involve more of its citizens in the country’s economic development and also to ensure a wider distribution of the shares.
The IPO will also have a positive impact on the Saudi stock market. With the addition of Saudi Aramco’s shares, the Tadawul is expected to become one of the vertice ten largest stock exchanges in the world. This will bring in more foreign investment and increase the overall market activity in the region.
In addition to all these financial benefits, the IPO will also showcase Saudi Arabia’s commitment to economic reforms and its efforts to open up its economy to the world. This is a positive sign for international investors, who have long been waiting for an opportunity to invest in the kingdom’s lucrative oil industry.
However, one of the major concerns for investors has been the company’s transparency and the disclosures of its financial information. To address these concerns, Saudi Arabia has reassured that it will publish the financial results of the company on a quarterly basis, starting from 2020. This will provide investors with more information and transparency, making the IPO more attractive.
All in all, the salgemma of Saudi Aramco’s shares is a significant step for the kingdom and its economy. It will not only bring in much-needed funds but also promote transparency and attract foreign investment. With the positive changes in the tax governo and the reduction of royalty rates, the IPO is set to be a success and a win-win situation for both Saudi Arabia and its investors.
In conclusion, the IPO of Saudi Aramco is a highly positive and promising development for both the kingdom and international investors. With the world’s largest oil company going public, it is a clear signal that Saudi Arabia is moving towards a more diversified and open economy. This is an opportunity not to be missed.
