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Saudi Approves IPO Of Aramco

Saudi state oil giant Aramco received regulatory approval to launch the world's largest initial public offering.

Saudi Arabia's Capital Market Authority said Sunday that its board approved the company's application for the registration and offering of part of its shares. But, it did not say when the highly-anticipated IPO would take place or give details on its size. However, reports said trading is likely to start in December.

Aramco, which pumps about 10% of the world's oil, generated the most profit of any corporation last year, confirmed today it is planning to list its shares on the Riyadh stock exchange.

For the year ended December 31, 2018, Aramco reported net income of 416.52 billion Saudi riyal, or $111.07 billion, compared to net income of 284.62 billion riyal in the prior year.

In contrast, Apple Inc. (AAPL) reported net income of $59.53 billion in 2018. ExxonMobil Corp. (XOM), the largest U.S. oil company, made a profit of $20.84 billion in fiscal 2018.

The Aramco was targeting a $2 trillion valuation, but the kingdom is now ready to accept a valuation of $1.6 trillion to $1.8 trillion to ensure the IPO is a success, the reports said.

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