However, in its highly anticipated announcement, Aramco, the most profitable company in the world, did not provide many specifics regarding the number of shares to be sold, pricing, or the launch date. According to bankers, investors are expected to value the company at approximately $1.5 trillion, which is lower than the $2 trillion valuation previously suggested by Crown Prince Mohammed bin Salman when he first proposed the IPO nearly four years ago. Aramco also did not address the security measures it has implemented following the unprecedented attacks on its oil facilities in September. Sources have indicated that the oil company may offer 1%-2% of its shares on the local stock exchange, potentially raising between $20 billion and $40 billion. A deal exceeding $25 billion would surpass the record set by Chinese e-commerce giant Alibaba in 2014. Aramco Chairman Yasir al-Rumayyan stated at a news conference in Dhahran that new investors can benefit from Aramco's value and long-term growth potential. The company will be engaging with investors over the next 10 days to gauge interest before setting a price range for the IPO. The IPO aims to support Prince Mohammed's economic reform agenda by raising funds for non-energy industries and diversifying revenue streams. Rumayyan mentioned that a decision on an international listing for Aramco shares will be made in the future, with no specific timeline or location provided. Gary Ross, CEO at Black Gold Investors, suggested that selling a small portion of Aramco in a controlled market allows the Kingdom of Saudi Arabia to maintain control over the company's value. Confirmation of the sale of shares in Saudi Arabian Oil Co, known as the oil giant, was announced approximately seven weeks after the damaging attacks on its oil facilities. This highlights Saudi Arabia's determination to proceed with the listing. Amin H Nasser, president and CEO of Saudi Aramco, made these statements during a news conference at the Plaza Conference Center in Dhahran, Saudi Arabia on November 3, 2019. Aramco stated that it does not anticipate the September 14 attack, which initially reduced its production by half, to significantly impact its business, operations, or financial status. According to Aramco, the company accounted for around one in every eight barrels of crude oil produced globally from 2016 to 2018. According to Reuters calculations, its net income for the third quarter of 2019 was $21.1 billion, far surpassing the income of oil giants like Exxon Mobil Corp, which was just over $3 billion for the same period. Rumayyan stated that the valuation would be determined after the investor roadshow. Amin Nasser, the CEO, announced that Aramco plans to release the prospectus on Nov. 9 during the news conference. To ensure the deal's success, Saudi Arabia is relying on easy credit for retail investors and significant contributions from wealthy locals. Rory Fyfe, managing director at Mena Advisors, believes that even with domestic players being pressured to invest, international investors will still value this lower than the expectations of Crown Prince Mohammed bin Salman. Attracting investors, the Saudi stock market experienced a 2% decline on Sunday following the Aramco announcement. According to fund managers and analysts, the benchmark index has dropped nearly 20% since May as local institutions have been selling shares to get ready for the Aramco deal. Salah Shamma, head of investment for MENA at Franklin Templeton Emerging Markets Equity, suggested that some local investors might be selling off other shares to redirect their investments to Aramco, potentially leading to short-term losses but long-term gains. To reassure investors, Aramco announced on Sunday that the state will waive its right to a portion of cash dividends on shares, giving preference to new shareholders. Additionally, Aramco is reducing the royalties it pays to the state. Starting from January 1, 2020, there will be a new royalty scheme in place for a company, with rates set at 15% up to $70 per barrel, 45% between $70 and $100, and 80% for prices above that. The Saudi market regulator has approved the company's listing application and has allowed non-resident institutional foreign investors to subscribe. Saudi investors may receive bonus shares, with a maximum of 100 bonus shares for every 10 allotted shares. Even with a valuation of $1.5 trillion, Aramco would still be worth at least 50% more than Microsoft and Apple, the world's most valuable listed companies with market capitalizations of around $1 trillion each. A 1% sale would bring in about $15 billion for Saudi Arabia, making Aramco the 11th largest IPO of all time according to Refinitiv data. Hasnain Malik, head of equity strategy at Tellimer, believes that there needs to be some perspective on the Aramco IPO in relation to the overall Saudi diversification story. He notes that the proceeds from the Aramco IPO are expected to be less than the dividends the government received from Aramco in the first half of 2019. The long-awaited listing of Aramco has generated significant interest on Wall Street since it was first mentioned by Prince Mohammed in 2016. The deal involves 27 banks, including Citigroup, Goldman Sachs, HSBC, JPMorgan, and Morgan Stanley. The chairman of Aramco, Rumayyan, stated that he believes now is the right time for Aramco to become a public company and go public through an IPO. Initial plans for a large international listing of about 5% were put on hold last year due to debates over where to list Aramco overseas. Aramco announced that the IPO timeline was postponed due to its acquisition of a 70% stake in Saudi Basic Industries Corp. The IPO preparations were restarted after Aramco's successful international bond sale, which aimed to build relationships with potential investors. The anticipated listing announcement on Oct 20 was delayed as advisers required more time to secure cornerstone investors. The oil and gas sector is facing challenges from the growing movement against climate change and the shift towards "green" technologies, causing some fund managers in Europe and the US to steer away from these industries. Aramco's bond sale in April revealed its financial details for the first time, showcasing a net income of $111 billion, significantly larger than the combined net income of the top five oil majors. These companies have been increasing payouts to shareholders to respond to the mounting pressure from climate activists. Aramco announced its plans to pay out a total of at least $75 billion in ordinary cash dividends for the year 2020. With a valuation of $1.5 trillion, this would result in a dividend yield of 5%, which is lower than the dividend yield offered by its competitor, Royal Dutch Shell. Refinitiv data shows that Shell's dividend yield is over 6%.