Fri, 29 Sep 2023

Saudi Aramco IPO could strengthen govt finances, support economy: S&P

moka news
2019-11-16 | Since 4 Year

The Saudi Aramco logo is pictured at the company’s oil facility in Abqaiq, Saudi Arabia. (File photo: Reuters)


Saudi Aramco’s forthcoming listing on the local stock market could help strengthen the government’s net asset position, with the proceeds potentially raising the kingdom’s longer-term economic growth, S&P Global Ratings said.

The world’s most profitable company starts a share sale on November 17 in an initial public offering (IPO) that may raise between $20 billion and $40 billion.

“The bulk of the funds raised will go to the government or the Public Investment Fund, potentially adding to the sovereign’s already strong fiscal net asset position of 72.7 percent of GDP,” S&P said in a note.

“Productively deployed, we believe the assets could also help maintain growth potential through our three-year ratings horizon,” it added.