Aramco mulling initial public offering

Aramco as the Saudi Arabian Oil Company in popularly known, said Friday it is considering selling shares in an initial public offering (IPO), part of Saudi Arabia’s efforts to privatise industries amid sinking oil prices and a move that could create the world's most valuable company.

"It has been studying various options to allow broad public participation in its equity through the listing in the capital markets of an appropriate percentage of the company’s shares," the company said in a statement. The company may also list shares of its oil refinery subsidiaries, it said.

After the company's study is completed, the board of directors will make its recommendations to the Saudi Aramco Supreme Council, which is headed by Deputy Crown Prince Mohammed bin Salman. "This proposal is consistent with the broad and progressive direction pursued by the Kingdom for reforms, including privatisation in various sectors of the Saudi economy and deregulation of markets," the company said.

Sources said, for decades, Aramco has been closely held and a major player with the Organisation of Petroleum Exporting Countries. But the steep drop in oil from a peak of more than $100 a barrel to below $34 for West Texas Intermediate, the US benchmark crude, is forcing changes, according to media reports. -abdullah