Saudi Arabia has allowed foreign investors to participate in IPOs of shares on the local stock exchange Tadawul. As reported on the website of the local regulator, the resolution will come into force on 1 January next year.
The regulator has approved guidelines under which the list of persons entitled to participate in the auction, included qualified foreign investors. With the permission of the Issuer financial consultants can apply these instructions to any issue and before January 1, 2017.
According to Bloomberg, Riyadh intends to weaken the criteria for candidates to participate in the auction.
Saudi Arabia is interested in attracting Russian investors. This, in particular, said in June the Minister of energy, industry and mineral resources of Saudi Arabia Khaled bin Abdul Aziz al-Faleh in the discussion of the privatization of the national company Saudi Aramco, the largest oil company in the world that controls the production of more than 0.2% of world oil reserves. “Yes, we are open to Russian investors. We have been cooperating with companies from Russia,” he said.
According to Bloomberg, Saudi Aramco IPO could take place next year; it is planned to place at least 5% of the shares. According to the head of the economic Council of the government (the body responsible for privatization. —) crown Prince Mohammed bin Salman as-Saud, Saudi Aramco can be estimated at $2-2. 5 trillion and become the most expensive company in the world, and the sale of even 1% of its shares will become the largest IPO in history.
“Local investors will be hard to make all these partial privatization, which the government plans, — quotes Bloomberg analyst division of Credit Suisse in Dubai Fahd Icbas. — First of all it concerns Aramco”.