01 Oct Saudi Aramco reveals $75 billion dividend plan ahead of IPO
Saudi Aramco has pledged to pay potential investors an annual base dividend of US$75 billion as the Saudi oil giant ramps up its preparations for a listing on an international exchange.
In a corporate overview posted to its website yesterday, the state-run firm said it would have a ‘progressive growing dividend on sustainable basis at board discretion’. Aramco also said it would scale back global expansion plans in order to increase cash flow.
Riyadh is also planning to change state royalty payments and cut corporation tax and pressuring rich Saudi families to take a stake in Aramco to boost its valuation.
Aramco is hoping to secure a $2 trillion evaluation for its highly anticipated initial public offering (IPO), although $1-1.5 trillion is deemed a more realistic price for the world’s most profitable company.
The IPO forms the crux of Crown Prince Mohammed bin Salman’s major plans to revamp the Saudi economy, with the development of new industries that will wean the kingdom from its reliance on oil revenues.
Earlier today, the company announced it had restored production levels to full capacity after its main oil processing facilities were hit by a drone attack less than three weeks ago.