Saudi Aramco converts to SAR 60 bln joint stock firm

Saudi Arabia’s cabinet has changed the status of Saudi Aramco into a joint-stock company as of Jan. 1, ahead of its planned initial public offering (IPO), the Kingdom’s official gazette reported on Friday.

The state will remain the direct major shareholder in the oil-giant, while the company’s first board of directors will be formed upon a cabinet decree, as proposed by the minister of energy.

Under the company's articles of association, Saudi Aramco has SAR 60 billion in capital, divided into 200 billion ordinary shares.

The government will have the sole right to appoint or dismiss the company’s board chairman and deputy chairman, the official news agency added.

The oil producer's board of directors can issue, list or float the company's shares or other securities in an IPO, inside or outside the Kingdom, or authorize the firm to do so, only after the government’s approval in case of selling shares or the extraordinary general assembly’s approval in case of increasing the number of shares.

Meanwhile, the state will remain the only entity with full ownership and exclusive control on all hydrocarbon materials within the Kingdom according to the state rules and regulations. 

The government will remain the solely responsible for making final decisions regarding the maximum levels of hydrocarbons that can be produced at any time and their maximum fixed production capacity rates that should be maintained.

Aramco’s IPO will comply with regulations of the Saudi stock exchange and the regulations of the international market where it will be listed.

The world's top oil exporter is aiming to complete procedures required for its planned dual listing on the Saudi stock market and an international exchange this year, Argaam earlier reported.

Saudi Arabia plans to sell 5 percent of Aramco shares, in what is expected to be the world’s largest ever IPO.