Saudi Arabian oil company, the long-awaited share issue broke records – the company's value rose more than 1 500 billion

the Saudi Arabian state oil company Saudi Aramcon a long-awaited share issue of the all-time richest. The company gathered on Thursday listautumisannista I get 25,6 billion usd, which exceeded the chinese ecommerce giant alibaba's 25 billion, a record for the year 2014.

in the issue were sold to a total of 1.5% Aramcon of the shares. The entire company a market value of 1,7 trillion dollars, or more than 1.5 trillion euros, which makes it as expected, the world's most valuable company. One trillion is a thousand billion.

Although the shares collected by the sum of the need of Saudi Arabia set by the goals, not the company's value soared to the very crown prince Mohammed bin Salman to seek two trillion.

Aramcon listing on a stock exchange is a part of the crown prince's plan to diversify Saudi arabia's economy, which has been totally dependent on oil revenues. Aramcon produce about ten percent of the world's oil.

the issuance of Shares by the revenue is intended to finance other economic sectors as well as invest in, inter alia, the new urban development. As part of prince Mohammed big plans traditionally closed in Saudi Arabia is, for example, opened its doors to tourism and begun to host international sporting events.

the saudi authorities informed of the clandestine Aramcon the issuance of shares already in 2016, but it has been postponed several times. The listing of causes of delay is estimated to be Saudi prince's expectations that the company would be worth two trillion.

a share issue of scale also reduced along the way. Originally the intention was to sell five per cent of the company's shares and collect this up to 100 trillion dollars.

Shares in the market was the saudis

the Share issue was focused on Saudi Arabia and other gulf oil states investors. Western investors have been prepared Aramcon relationship, fearing that the company's governance and transparency are not at a sufficient level. Fears is also the fact that Aramcon hitherto fabulously profitability deteriorates when the importance of oil in the world energy economy is reduced.

Saudi Arabia shares had been marketed heavily in advance to the citizens, and the state was, for example, offer affordable bank loans shares to purchase. Share of buying the land pride company were marketed as a patriotic duty. The company has promised to pay dividends next year to $ 75 billion amount.

the Shares end 0.5% was sold to the citizens of the country, and the percent of the shares were sold, inter alia, investment funds and state-led pension programs.

Aramcon shares will be traded in Saudi Arabia stock exchange next Thursday. The starting price is 32 rials per share (8,53 dollars, to 7.68 million). Plans shares to sell in foreign markets are so far through the ice.

the World's most profitable company

Aramco said the world's support the most beneficial company. Its net profit was the beginning of this year until the end of September $ 68 billion. Economic news release according to Bloomberg (you move to another service) in 2018 Aramcon the net result was approximately the same as the technology companies Apple and Google, as well as the energy company Exxon Mobile, total.

Still, the company's shares placement is investors risk, because Saudi arabia's state-control of the company's operations vigorously. The country's government, for example, determines the oil production amount.

on Thursday oil producing organisation Opec meeting in Austria, in Vienna to negotiate to reduce production as well as fuel price increases. Saudi Arabia is Opec johtajamaa. The meeting however ended without contracts late Thursday night.

Aramcon oil production disrupted in September the company's two production facilities made to the drone strikes, with Saudi Arabia and the united states have accused Iran. Saudi Arabia told after the attacks that production declined about 5.7 million barrels per day. Normal day rate is for 12 million barrels.

Read more:

Saudi arabia's oil power, Aramco is planning a giant initial public offering on November

the Saudi list the giant oil company on the stock exchange, value of up to eur 1 500 billion – a Finnish expert: Saudi Arabia needs the money

Sources: AP, Reuters, AFP

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