In its highly anticipated announcement, Aramco, the most profitable company in the world, did not provide many details 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 initially suggested by Crown Prince Mohammed bin Salman 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. If the deal exceeds $25 billion, it would surpass the record set by Chinese e-commerce giant Alibaba in 2014. During a news conference at the headquarters of Aramco in Dhahran, Chairman Yasir al-Rumayyan stated that today presents a great opportunity for new investors to benefit from the company's ability to create value and enhance it in the long run. The company plans to engage with investors over the next 10 days to gauge interest before determining the price range for the IPO. The goal of the IPO is to support Prince Mohammed's economic reform agenda by raising funds to develop non-energy industries and diversify revenue sources. Rumayyan mentioned that a decision regarding 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, noted that selling a portion of Aramco in a limited market allows the Kingdom of Saudi Arabia to maintain control and potentially increase the company's value beyond its fair market value. The confirmation of the sale of shares in the oil giant, formally known as Saudi Arabian Oil Co, was announced approximately seven weeks after the damaging attacks on its oil facilities. This highlights Saudi Arabia's determination to proceed with the listing despite the attacks. 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 the September 14 attack, which targeted key plants in Saudi Arabia's oil industry and initially cut its production in half, would not significantly impact its business, operations, or financial condition. According to Aramco, the company accounted for about one eighth of the world's crude oil production from 2016 to 2018. According to Reuters calculations, in the third quarter of 2019, its net income was $21.1 billion, which far exceeded the income of other 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. CEO Amin Nasser announced that Aramco plans to release the prospectus on Nov. 9. Saudi Arabia is using easy credit for retail investors and large contributions from wealthy locals to help secure the deal. Rory Fyfe, managing director at Mena Advisors, mentioned that even with strong pressure on domestic investors to participate, international investors are still expected to value the deal below Crown Prince Mohammed bin Salman's expectations. The Saudi stock market experienced a 2% decline on Sunday following the Aramco announcement, with the benchmark index dropping nearly 20% since May as local institutions sold shares to prepare for the Aramco deal, according to fund managers and analysts. Salah Shamma, head of investment, MENA, at Franklin Templeton Emerging Markets Equity, suggested that some local investors may be selling other shares to reallocate funds to Aramco, but this could result in short-term losses for long-term gains. To reassure investors, Aramco announced on Sunday that the state will waive its right to receive a portion of cash dividends on shares, giving priority to new shareholders. Additionally, Aramco is reducing the royalties it pays to the state. Starting on January 1, 2020, a new royalty scheme will be implemented by a company, with varying rates depending on the price of oil. The Saudi market regulator approved the company's application to list on Sunday, and non-resident institutional foreign investors are exempt from subscribing. 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 significantly more than Microsoft and Apple, the world's most valuable listed companies. A 1% sale of Aramco would bring in around $15 billion for Saudi coffers, making it the 11th biggest IPO of all time according to Refinitiv data. Hasnain Malik, head of equity strategy at Tellimer, emphasized the significance of the Aramco IPO in the context of Saudi Arabia's diversification efforts, noting that the proceeds are expected to be lower than the government's dividends from Aramco in the first half of 2019. The long-awaited listing, first mentioned by Prince Mohammed in 2016, has involved the collaboration of 27 banks, including Citigroup, Goldman Sachs, HSBC, JPMorgan, and Morgan Stanley. Despite initial plans for a significant international listing, the share sale was postponed last year due to uncertainties regarding the listing location. Rumayyan expressed the belief that the current timing is ideal for taking Aramco public. Aramco announced that the IPO timetable was postponed due to the process of acquiring a 70% stake in Saudi Basic Industries Corp. The preparations for the IPO resumed in the summer following a successful international bond sale by Aramco, which was seen as a way to build relationships with potential investors before the IPO. The expected listing announcement on Oct 20 was delayed as advisers needed more time to secure cornerstone investors, according to three sources. The increasing focus on fighting climate change and adopting "green" technologies has caused some fund managers in Europe and the United States to shy away from the oil and gas sector. In April, a bond sale forced Aramco to disclose its finances for the first time, revealing a net income of $111 billion, which is more than a third larger than the combined net income of the top five oil majors. These companies have been increasing payouts to shareholders to address growing pressure from climate activism. Aramco announced on Sunday its plan to pay out total ordinary cash dividends of at least $75 billion in 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 competitor Royal Dutch Shell. Refinitiv data shows that Shell's dividend yield is more than 6%.