"The introduction of the century" is on the Tadawul, the flagship index of the Riyadh Stock Exchange. After a subscription period of 18 days, Saudi Aramco decided to set the price of its shares at 32 riyals ($ 8.53) – the top of its range of 30-32 riyals – for a first quotation scheduled on 12 December. This "IPO" of $ 25.6 billion (23 billion euros) is the largest in the stock market history, ahead of the Chinese online trading giant Alibaba in New York in 2014 (25 billion dollars ).
The transaction values the oil company at $ 1.7 trillion and makes it the world's leading company, all sectors combined, far ahead of the US Apple ($ 1,180 billion). A capitalization of Saudi Aramco that some bankers and analysts nevertheless consider overestimated. With 1.5% of the capital on the market, these 25.6 billion will feed the public fund financing the diversification of the Saudi economy, too dependent on oil, under the "Vision 2030" plan launched by Crown Prince Mohammed Ben Salman, aka "MBS".
A success ? We are far from the initial hopes of the strong man of the Wahhabi kingdom. Four years ago, by announcing this strategic plan and its keystone, the Saudi Aramco IPO, he planned to sell 5% for $ 100 billion and open it to foreign capital. He worked experts for four years to comply with the rules of transparency imposed on listed companies (accounting, governance …) and consulted major ulema, some of whom have decreed the operation "halal" (consistent with Islam). Then King Salman agreed.
Convince international investors
Las! Faced with the hesitation of international investors, "MBS" had to reduce its ambitions and turn first to the Saudis. With a large backing of advertising campaigns, he called for the patriotism of the population, businessmen and princes like the wealthy Al-Walid Ben Talal, who hardly had the leisure to refuse. It has expanded the offer to friendly petro-registers such as Kuwait and Abu Dhabi, which would have agreed to subscribe for a total of 10% of the securities placed on the market.
In a second time, Riyadh could put about 3% more on the market and to quote Aramco on a big place, like London or Tokyo. He would then turn to foreign capital for a company whose vocation is, according to its CEO, Amin H. Nasser, to become "The world's first integrated energy and chemistry company". Still, it will be necessary to convince these international investors.
