Saudi Aramco Files For An IPO: Here's What You Need To Know
Zacks Investment Research | Nov 21, 2019 09:19PM ET
Oil and gas behemoth Saudi Aramco have officially filed its paperwork to go public and intends to raise up to $25.6 billion through an initial public offering on the Riyadh stock market.
The share sale – touted to be the world’s largest – started on Nov 17. Retail investors can apply till Nov 28 while for institutional investors, the IPO subscription will be open until Dec 4. Around one-third of the offering is reserved for local retail investors. The final price will be published by Saudi Aramco on Dec 5.
So, here’s a rundown of Saudi Aramco.
What Does Saudi Aramco Do?
Saudi Arabian Oil Company (Saudi Aramco) is the world's largest integrated energy firm. On an average, the state-owned oil and gas producer churned out a whopping 10 million barrels of oil each day during the six months from January 2019 to June 2019. Saudi Aramco is also a refining juggernaut, with a gross refining capacity of 4.9 million barrels per day.
How Much Money Does Saudi Aramco Make?
The company recently published its first-ever half-year financial results. For the six months that ended Jun 30, Saudi Aramco reported a slight decline in profits due to lower oil prices but net income – at $46.9 billion – still eased past the $20 billion+ for the likes of Microsoft (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL) during the same period. The so-called ‘Big Oil’ companies like ExxonMobil (NYSE:XOM) , Chevron (NYSE:CVX) and Royal Dutch Shell (LON:RDSa) Zacks Investment Research
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