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Mon 11 Nov 2019 10:19 AM

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Saudi Aramco to offer $1bn in shares to staff

Oil giant aims to incentivize its 73,000 staff with the share scheme, according to its IPO prospectus

Saudi Aramco to offer $1bn in shares to staff

Saudi Aramco will allow investors to start bidding for shares in the world’s most-profitable company from November 17.

Saudi Aramco is to offer $1 billion in shares to employees as part of its initial public offering (IPO) next month, according to the official prospectus.

The move is part of a plan to help incentivize executives and the company’s 73,000 staff, Arab News reported

Saudi Aramco will allow investors to start bidding for shares in the world’s most-profitable company from November 17, but it not clear what the size of the stake will be. The final pricing for the IPO will be revealed on December 5, according to the prospectus.

In a bid to guarantee the IPO’s success, Bloomberg also reported last week that Saudi authorities were in talks with some of the kingdom’s wealthiest business leaders to buy stocks in the Aramco’s IPO, including the Olayan family and Prince Alwaleed Bin Talal.

Analysts from 16 banks told AFP the valuation on the company could range from $1.1 trillion to $2.5 trillion. Aramco reported income of $68.2 billion in the first nine months of 2019, compared with $83.1 billion a year ago. Revenue slipped to $217 billion from $233 billion.