Saudi Arabian Deputy Crown Prince Mohammed bin Salman said Monday that Saudi Aramco will offer a small minority stake through an initial public offering.
According to Reuters, Prince Mohammed said in a television interview that Saudi Aramco may offer a less than 5 percent stake through an IPO and added that the firm is currently valued at more than $2 trillion.
“If 1 percent of Aramco is offered to the market, just 1 percent, it will be the biggest IPO on earth,” Prince Mohammed said.
Stakes in the company’s subsidiaries may also be offered as IPOs as part of a broader privatization initiative and economic reform effort.
Prince Mohammed also said he would like Saudi Aramco to transform into a holding company with an elected board of directors, Reuters said.
Saudi Aramco confirmed in January that it had begun studying “various options to allow broad public participation in its equity” in either the company as a whole or a bundle of its downstream subsidiaries.”
The company did not provide details about the potential size of the offering other than saying it would list an “appropriate percentage of the company’s shares and/or the listing of a bundle its downstream subsidiaries.”
The kingdom’s government is expected to continue holding a majority stake in the company after the IPO is issued.
Once the various options have been studied, the findings will be presented to the company’s board of directors who will then make recommendations to the Saudi Aramco Supreme Council.
Saudi Aramco had 261.1 billion barrels in recoverable crude oil and condensate reserves in 2014 and produced an average 9.5 million barrels of crude oil that same year.
The company’s crude reserves currently account for more than 15 percent of total global oil reserves, Reuters said.