In its much-anticipated announcement, Aramco, the most profitable company in the world, did not provide specific 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 disclose any security measures taken after the unprecedented attacks on its oil plants in September. Sources have revealed that the oil company may offer 1%-2% of its shares on the local stock exchange, potentially raising $20 billion-$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 Aramco's headquarters in Dhahran, Chairman Yasir al-Rumayyan stated that new investors have a great opportunity to benefit from Aramco's value and long-term growth potential. The company will be speaking 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 plans by generating 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, though no specific timeline or location was provided. Gary Ross, CEO of Black Gold Investors, noted that selling a portion of Aramco in a controlled market allows Saudi Arabia to have more influence in maintaining the company's value above its fair market value. Confirmation of the sale of shares in the oil giant, known formally as Saudi Arabian Oil Co, was announced about seven weeks after the damaging attacks on its oil facilities. This highlights Saudi Arabia's commitment to move forward with the listing despite the attacks. Amin H Nasser, president and CEO of Saudi Aramco, made this announcement 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 targeted key plants in Saudi Arabia's oil industry and initially cut its production in half, to have a significant impact on its business, operations, or financial condition. According to Aramco, the company accounted for approximately one in every eight barrels of crude oil produced globally from 2016 to 2018. According to Reuters calculations, the net income of $21.1 billion in the third quarter of 2019 for Aramco far surpassed that of oil giants like Exxon Mobil Corp, which was just over $3 billion. Rumayyan stated that the valuation would be determined after the investor roadshow. Aramco CEO Amin Nasser announced at the news conference that the prospectus will be released on Nov. 9. Saudi Arabia is relying on easy credit for retail investors and contributions from wealthy locals to help finalize the deal. Rory Fyfe, managing director at Mena Advisors, believes that despite strong pressure on local investors, international investors will still value the deal below the expectations of Crown Prince Mohammed bin Salman. Attracting investors, the Saudi stock market experienced a 2% decline following the Aramco announcement, with the benchmark index decreasing by almost a fifth since May. Local institutions have been selling shares in preparation for the Aramco deal, according to fund managers and analysts. Salah Shamma, head of investment at Franklin Templeton Emerging Markets Equity, suggested that some local investors may be selling off other shares to redirect their investments to Aramco, indicating a potential short-term sacrifice for long-term benefits. In an effort to reassure investors, Aramco announced on Sunday that the state would waive its right to a portion of cash dividends on shares, prioritizing new shareholders. Additionally, Aramco is reducing the royalties it pays to the state. Starting from January 1, 2020, a new royalty scheme will be implemented by the company, with rates increasing progressively based on the price of oil. The Saudi market regulator has approved the application for listing, and non-resident institutional foreign investors have been granted an exemption 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 valued at least 50% higher than Microsoft and Apple, the world's most valuable listed companies. A 1% sale of Aramco would generate around $15 billion for Saudi coffers, making it the 11th largest IPO in history, according to Refinitiv data. Hasnain Malik, head of equity strategy at Tellimer, emphasized the importance of considering the Aramco IPO in relation to the broader Saudi diversification efforts, noting that the proceeds from the IPO are expected to be less than the government's dividends from Aramco in the first half of 2019. The anticipated listing has garnered significant interest on Wall Street since it was first mentioned by Prince Mohammed in 2016. Aramco has enlisted the help of 27 banks, including Citigroup, Goldman Sachs, HSBC, JPMorgan, and Morgan Stanley, to work on the deal. Despite initial hopes for a large international listing, the share sale was postponed last year due to disagreements over the listing location. Rumayyan expressed confidence in the decision to take Aramco public, stating that now is the right time for the IPO. Aramco's initial public offering (IPO) schedule was postponed due to its acquisition of a 70% stake in Saudi Basic Industries Corp. The IPO plans were resumed following a successful international bond sale, which helped build relationships with potential investors. Delays in the IPO announcement on Oct 20 were attributed to the need for more time to secure cornerstone investors. Concerns about climate change and a shift towards environmentally-friendly technologies have deterred some fund managers in Europe and the US from investing in the oil and gas sector. Aramco's bond sale in April revealed its financial details for the first time, showing a net income of $111 billion, surpassing the combined net income of the top five oil majors. To combat pressure from climate activists, these companies have been increasing shareholder payouts. 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 above 6%.