Saudi Aramco Sets Its Value at $1.6-1.7 Trillion
The largest oil company in the world, the privately-owned Saudi Aramco, has assigned itself a value of between $1.6 and 1.7 trillion as it prepares to float about 1.5 percent of its shares in a historic initial public offering. At about $8 per share, the IPO would be worth up to $25.6 billion, the largest ever. Earlier, Saudi Crown Prince Mohammed bin Salman had seen a value of some $2 trillion for the company, considered the world’s most profitable. The crown prince decided to sell off shares to help raise funds for his Vision 2030 plan, which he hopes will help the kingdom reposition itself from a solely petroleum-based economy in light of a projected reduction in demand for crude. According to experts, Saudi Arabia’s in-the-ground reserves will last for another 50 years at current rates of extraction.