Saudi Aramco IPO

Saudi Aramco’s listing is expected to overshadow every IPO in history, as it may be valued at a staggering $2 trillion. Find out more about this oil and gas conglomerate and learn how to trade its shares with IG.

Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening a trading account. We’re here 24 hours a day, from 8am Saturday to 10pm Friday.

Contact us: 0800 195 3100

Saudi Aramco IPO

Saudi Aramco’s listing is expected to overshadow every IPO in history, as it may be valued at a staggering $2 trillion. Find out more about this oil and gas conglomerate and learn how to trade its shares with IG.

Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening a trading account. We’re here 24 hours a day, from 8am Saturday to 10pm Friday.

Contact us: 0800 195 3100

Why trade Saudi Aramco's IPO with IG?

Speculate on Saudi Aramco

Leverage your exposure with CFD trading or spread betting

Go long or short

Buy or sell based on your prediction of Saudi Aramco’s market cap

Buy Saudi Aramco stock

Invest in Saudi Aramco with a share dealing account

When is the Saudi Aramco IPO?

Saudi Aramco could go public in 2020, but there is no confirmed date for the IPO. Saudi energy ex-minister Khalid Al-Falih hinted that the IPO may be pushed to 2021.

Plans for the IPO were announced in 2016 but Saudi Aramco, the world’s most profitable company, pushed back the date several times due to bookkeeping and corporate structure issues. Saudi Aramco’s senior VP of finance, Khalid Al-Dabbagh, confirmed that the company is ready for the IPO, but the timing will depend on shareholders’ perception of the market. The company is likely to list on the London Stock Exchange (LSE), where its bonds are listed, or the New York Stock Exchange (NYSE).

How to trade the Saudi Aramco IPO

You can trade the Saudi Aramco IPO before and after the listing, giving you more opportunities to gain exposure to the oil and gas giant.

Before the listing

If IG offers a ‘grey market’ ahead of the Saudi Aramco IPO, you could speculate on the company’s share price before it lists on an exchange. We base the price of a grey market on our prediction of a company’s market capitalisation by the end of its first trading day. This enables you to ‘buy’ or ‘sell’ depending on the direction you think the market cap will take.

Register to receive updates on upcoming IPOs

After the listing

You can buy the shares or speculate on Saudi Aramco’s share price movements after its listing. If you want to buy an own the shares, you can use IG’s share dealing service. Alternatively, you can speculate on share price movements via a CFD trading or spread betting account.

Open an account now

Fast execution on a huge range of markets

Enjoy flexible access to more than 16,000 global markets, with reliable execution

Deal seamlessly, wherever you are

Trade on the move with our natively designed, award-winning trading app

Feel secure with a trusted provider

With 45 years of experience, we’re proud to offer a truly market-leading service

What will the Saudi Aramco IPO value be?

There is no confirmed Saudi Aramco IPO value yet. It has been reported that Saudi Crown Prince Mohammed bin Salman is after a $2 trillion valuation, but the final figure will depend on the outlook for oil prices, as well as Saudi oil production and exports. Ultimately, one of the world’s investment banks will set the Saudi Aramco IPO value.

What could the Saudi Aramco share price be when it floats?

The Saudi Aramco share price will depend on the final valuation and the amount of shares the business will release to the public. The Saudi kingdom plans to sell a mere 5% of the company’s shares, with the majority remaining the property of the sovereign government. After the listing, the share price will fluctuate as supply and demand changes.

Why is Saudi Aramco going public?

Saudi Aramco was originally planning on going public to raise capital for the kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), which it was expected to join. At the time, it was anticipated that the listing would push the fund’s value up to $3 trillion. However, the PIF no longer needs the cash injection so Saudi Aramco is now focusing on raising money for its own diversification and is no longer expected to be brought under the PIF’s umbrella.

What is the outlook for Saudi Aramco?

The outlook for Saudi Aramco is mixed, as a few factors should be taken into consideration when forecasting the future of the company. The short-term outlook is based mainly on its exposure to oil – therefore, the oil price. If there is an uptrend, Saudi Aramco should be pleased with the investment bank’s decision at the time of the IPO. However, fears of a recession in the US might have a negative impact on petroleum demand.

The long-term outlook will depend on the outcome of the IPO. The point of the listing is to diversify and move away from industry trends surrounding fossil fuels. If it can execute its plan, the outlook could be positive. It has already started its expansion by way of the recent acquisition of a 70% stake in Saudi petrochemicals giant SABIC.

How has Saudi Aramco been performing?

Saudi Aramco has been growing its revenue every year, while cutting production costs and reducing its carbon footprint. In 2017, net income was $75.9 billion, increasing to $110.1 billion in 2018. The half-year report for 2019 revealed net income of $46.9 billion. The company has managed to cut extraction costs of crude oil to just $7.50 a barrel and overheads are only $1.50 per barrel. Oil production in 2019 is expected to reach 12.5 million barrels a day.

Who are Saudi Aramco’s competitors?

Saudi Aramco’s competitors include Shell (£223 billion), BP (£102 billion), Chevron (£224 billion) and Exxon Mobil (£295 billion), but it trumps all these companies in terms of market cap and revenue. Surprisingly, Saudi Aramco was formed much later than its competitors, it has the least number of employees and it is the only conglomerate between the five that hasn’t listed.

Saudi Aramco management team

There are seven key executives on Saudi Aramco’s corporate management team

Amin H. Nasser President and chief executive officer
Nabeel A. Al Mansour Senior VP general counsel and corporate secretary
Mohammed Y. Al Qahtani Senior VP upstream
Abdulaziz M. Al-Judaimi Senior VP downstream
Ahmad A. Al-Sa’adi Senior VP technical services
Muhammad M. Al-Saggaf Senior VP operations and business services
Khalid H. Al-Dabbagh Senior VP Culture

Who are the Saudi Aramco IPO advisors?

Saudi Aramco has three independent IPO advisors and three global coordinators (underwriters). However, recent reports have stated that the structure might change before the IPO.

Evercore Independent advisor
Moelis & Co Independent advisor
Michael Klein Independent advisor
JPMorgan Underwriter
Morgan Stanley Underwriter
HSBC Holdings Underwriter

Register your interest for IPO news


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

How do IPOs work?

IPOs – short for ‘initial public offerings’ – happen when a company decides to list its shares on an exchange. This means the public can then buy or trade the shares. IPOs can create a lot of public interest, especially if the company is doing well. To learn more about IPOs and how they work, watch this short video.

Choose the UK’s No.1 spread betting and CFD provider1

Why open a trading account with anyone but the best spread betting and CFD provider? With 45 years of experience, we're proud to offer a truly market-leading service.

FAQs

Could I profit from the Saudi Aramco IPO?

The short answer is yes, you could. You could either trade the grey market before the IPO, or trade or invest in Saudi Aramco shares after the listing. Trading the shares (before or after the IPO) will be profitable if your prediction of the share price movement is correct. If you choose to buy the shares (post-IPO), you will profit if the share price goes up.

How can I stay up to date with the Saudi Aramco IPO?

You can stay up to date with the Saudi Aramco IPO if you sign up to our IPO mailing list.

What is Saudi Aramco’s business model?

Saudi Aramco is the world’s biggest oil and gas company. Operations include the exploration, production, refining, distribution and marketing of oil and gas.

You might be interested in…

What you need to know about WeWork's initial public offering

Learn more about Peloton's highly anticipated IPO

Find out how you can trade Deliveroo's upcoming IPO

1Based on revenue excluding FX (published half-yearly financial statements, June 2019).

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.