Saudi Aramco have today confirmed that they are considering a share sale. Were the move to go ahead, the company would become the world’s most valuable listed company. Owned by the Saudi Arabian state, the company is already the world’s largest oil producer and a sale would allow broader public participation in its equity. Aramco currently has crude oil reserves of around 265 billion barrels, a figure estimated to be more than 15% of global deposits.
However, this move may have been triggered by the falling global price of oil. Reports have circulated that the Saudi Government have a deficit of nearly $100 billion due to the global oil price collapse. The decision to sell shares could be worth up to $1 trillion, almost double the world’s current most valuable company Apple, worth an estimated $534 billion. This would however depend on what was offered in the public domain, with some of their downstream firms likely to be offered. Experts have predicted that it would be extremely unlikely for the secretive company to offer shares in the actual parent company. The move was confirmed recently in an interview with The Economist.