Aramco finally announced concrete plans for an IPO on November 3, nearly four years after the idea was originally suggested by Crown Prince Mohammed. It was aimed at raising capital to diversify the Saudi economy away from oil as part of his 2030 vision.
The net income earned last year by Saudi Aramco was nearly twice that of Apple, the world’s most profitable firm.
The company attributed the delay to its IPO timetable to processes and efforts required to acquire a 70% stake in petrochemicals maker Saudi Basic Industries Corporation (SABIC).
Investors can take comfort that Aramco remains the world’s most profitable company with a planned dividend of $75 billion for 2019-20, more than five times higher than that of the S&P 500′s biggest company Apple. And the lower of the headline valuation would still comfortably beat the world’s largest integrated international oil company ExxonMobil which has a current market capitalization of ~$300 billion.