, Columnist
Saudi Arabia Needs Lots of Private Oil Money
An IPO could be half as big as all annual new issues combined.
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Saudi Arabia is considering a staggered process for the colossal initial public offering of its state oil company, according to an FT report. That could potentially involve a local IPO of Saudi Aramco in Riyadh alongside a private placement to cornerstone investors, with an international sale following later.
Whatever structure Aramco opts for, the sheer size of the offering means shareholders taking hefty stakes would have to be an essential part of its privatization. This was always going to be an IPO roadshow taking in the world's richest individuals and institutions.