On Monday, Saudi Arabia’s energy minister said that he had been replaced as chairman of state-owned oil giant Aramco ahead of a planned initial public offering (IPO). Khalid al-Falih said on Twitter, “I congratulate… Yasir al-Rumayyan, governor of the Public Investment Fund, on his appointment as chairman of the board of directors of Saudi Aramco, which is an important step to prepare the company for the public offering.” 

A member of the Aramco board, Rumayyan, is the head of the vast Saudi sovereign wealth fund that is spearheading an ambitious plan to expand the kingdom’s oil-reliant economy.

Last week, after Faliih lost another portfolio, the news comes. Falih headed long Aramco and the energy ministry. On Friday, Saudi Arabia declared the formation of a new ministry and mineral resources, departing it from the energy ministry. 

Aramco has also decided to float around five percent of the state-owned company in 2020 or 2021 that will be the world’s biggest stock sale. The foundation of a reform program, that was visualized by Crown Prince Mohammed bin Salman to remove the Saudi economy off its dependence on oil, was formed by the planned IPO.

The agenda’s mission is to raise up $100 billion based on a $2 trillion valuation of the company. However, there has been a long debate among investors whether Aramco is really worth that much. The desire of Saudi rulers to reach a $2 trillion valuation was failed and that is being considered as the reason behind the delay which was scheduled for 2018. 

Aramco stated earlier this month that its first-half net income for this year shifted nearly 12% to $46.9 billion on lower crude. In April, Aramco revealed for the first time its secretive account and that it is the world’s most profitable company.

Related Articles