The world’s most profitable crude oil company will go public in the next month. Experts and merchant bankers are stating it to be one of the biggest IPOs ever one that could even surpass the likes Alibaba the Chinese e-commerce giant founded by Jack Ma that went public in 2014 with a staggering $ 25 billion.
Saudi Aramco is a company that sells crude oil to various countries and is one of the most profitable companies in the world. Last year the company made a net profit of $ 111 billion which is more than the combined net profit of J.P. Morgan Chase, Exxon Mobil, and Google parent company Alphabet put together.
Although the officials of the company have not specified the number of shares it wants to offer to the public sources say the number could be close to 1% to 3% of the company’s total number of shares. It even did not specify any range.
The company will be listed in Saudi Arabia’s stock exchange Tadawul Exchange. Saudi prince said that the company could have gone public way back in 2017 and now the total number of the shares of the company could be valued at somewhere around a staggering $2 trillion. Experts have although valued the company’s shares at $1.5 trillion.
Aramco sells about 10% of the world’s total crude oil. It took the company more than two years to estimate its financial value before it offered to go public.
The per barrel crude oil profit of the company is about $ 60. It costs the company $ 2.80 to get a barrel of crude oil from the ground which it sells to the market at about $ 62 per barrel. This is nowhere close to the other crude oil companies anywhere in the world. Even some of the leading crude oil companies in America can hardly reach a profit of $ 50 per barrel.
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