Figure 5. Aramco 2021 ownership structure. Notes: 1. In 2021 Aramco IPO, Saudi Government is likely to place 95% of Aramco shares in PIF, because after stock listing of Aramco, the shareholder must be an investment vehicle. 2. SABIC remains separately traded as an Aramco subsidiary. 3. Aramco IPO will initially sell 5% stake to private investors and gives Saudi Government one time payment of the IPO value (~$100 billion), which likely will be placed in PIF for diversified local and global investments. For Government selling of stake is a one time windfall in return for “losing” 5% of all future Aramco dividends to private investors. (©Authors)


Saudi Aramco Privatization in Perspective: Financial Analysis and Future Implications

Ruud Weijermars, Jonathan Moeller

Journal of Finance and Economics. 2020, 8(4), 161-170 doi:10.12691/jfe-8-4-2