Saudi Arabia has announced the stock market debut of energy giant Aramco in what could be the world's biggest IPO, underpinning Crown Prince Mohammed bin Salman's ambitions to overhaul the kingdom's oil-reliant economy.
After years of delay, Aramco said it plans to sell an unspecified number of shares on the Riyadh stock exchange, calling it a "historic" milestone for the world's most profitable company which pumps 10% of the world's oil.
However, the state firm said there were no current plans for an international listing, indicating that the long-discussed goal for a second offering on a foreign bourse had been put aside.
The launch, which has been approved by regulators, forms the linchpin of Prince Mohammed's ambitious plans to transform the petro-state, with tens of billions of dollars needed to fund megaprojects and new industries.
With analysts saying that Aramco could be valued at up to $1.7 trillion, the initial public offering is potentially the world's biggest, depending on how much of the company it decides to sell.
"Today marks a significant milestone in the history of the company and important progress towards delivering Saudi Vision 2030, the kingdom's blueprint for sustained economic diversification and growth," Aramco chairman Yasir al-Rumayyan said.
The final offer price and the number of shares to be sold "will be determined at the end of the book-building period," said the firm headquartered in the eastern city of Dhahran.
Aramco had initially been expected to sell a total of 5% on two exchanges, with a first listing of 2% on the Tadawul Saudi bourse followed by a three percent listing on an overseas exchange.
"For the (international) listing part, we will let you know in due course. So far it's only on Tadawul," Mr Rumayyan said amid reports it was struggling to get institutional investors on board due to questions over transparency and governance.
Aramco, which makes Saudi Arabia the world's top energy exporter, is seen as the kingdom's crown jewel and the backbone of its economic and social stability.
Its 2018 net profit of $111.1 billion is higher than the profits of Apple, Google and Exxon Mobil - combined.
Aramco only began releasing interim financial results recently, but in its push for transparency, the secretive company also released results for the nine months to September, saying net profits came in at $68 billion.
The government is reportedly seeking to get wealthy Saudi families to invest in the IPO and to ease lending restrictions for ordinary citizens to buy a stake in the company.
Some Saudi commentators have also sought to promote investment in the stock as a patriotic duty, although observers pointed to the perils of the strategy.
"Listing on the domestic market without firm plans to list internationally is risky for the Saudi stock market because it could completely overweight it," Ellen Wald, author of the book "Saudi Inc.", told AFP.
"If oil prices drop or Aramco stock falls, it is such a large part of Tadawul, it could bring the entire stock market down."
