London Daily

Focus on the big picture.
Tuesday, Jun 02, 2026

Aramco meets investors in last-minute bid to hit $2 trillion IPO target

Aramco meets investors in last-minute bid to hit $2 trillion IPO target

Saudi Aramco officials and advisers are holding last-minute meetings with investors in an attempt to achieve as close to a $2 trillion valuation ahead of an expected Sunday announcement that the initial public offering (IPO) will go ahead, according to three sources.

Failure to reach the target would cause a dilemma for Saudi Crown Prince Mohammed bin Salman - swallow the bitter pill of going ahead at a lower valuation or postpone the initial public offering (IPO) once again.

The Aramco officials and advisers are meeting institutional investors around the world, according to the three people familiar with the matter. Chief executive Amin Nasser has been meeting investors in New York and London this week, they added.

Saudi Arabia’s crown prince on Friday approved the go ahead of the IPO of state oil giant Aramco, five sources familiar with the matter told Reuters.

The main sticking point remains the $2 trillion valuation, which has often been considered too ambitious by advisers and some insiders, according to the three sources. A valuation closer to $1.5 trillion is more likely, with wealthy Saudi families the main investors in the IPO, they said.

“Saudi Aramco does not comment on rumours or speculations,” the company said in an emailed response to Reuters’ queries about the meetings and IPO launch date. Aramco added it was ready for the IPO, and that the timing would depend on market conditions.

Saudi energy minister Prince Abdulaziz said on Wednesday that it would be a Saudi decision, specifically by Crown Prince Mohammed.

A weak outlook for oil prices, against a gloomy global economic picture and increasing climate change activism, could dampen investor interest, particularly in the Western world.

“Aramco’s officials and advisers are still on the road,” said one of the sources, a major institutional investor.

Saudi Arabia is separately still holding government-to-government meetings to attract investment from sovereign wealth funds, the investor added.

The state-owned oil major has also approached governments in the Gulf and Asia, including China, to try to secure the bulk of the investment from countries on friendly terms with Saudi Arabia, as the reception elsewhere has been cooler, sources have previously said.


DIVIDEND PAYOUT

The listing is the centrepiece of the crown prince’s plan to shake up the Saudi economy and diversify away from oil. But there have been various delays since the 2016 announcement. A launch is now expected on Sunday, sources have previously said.

Aramco has said it will pay a base dividend of $75 billion, which at $2 trillion would mean a dividend yield of 3.75%, below those already offered by competitors like Exxon Mobil Corp (XOM.N) and Royal Dutch Shell (RDSa.L).

Shell’s dividend yield is over 6% and Exxon’s over 5%, according to Refinitiv data.

Oil majors have been raising payouts to shareholders over the past years to counter rising pressure from climate activism on investors to dump oil stocks and help the world switch to cleaner fuels such as wind and solar.

To achieve $2 trillion, in the largest IPO in history, Riyadh needs the initial listing of a 1% to 2% stake on the Saudi market to raise at least $20 billion to $40 billion.

Prince Mohammed wants to eventually list a total of 5% of the company. An international sale is expected to follow the domestic IPO.

The close relationship between new Aramco chairman Yasser al-Rumayyan, who also heads the PIF, the kingdom’s sovereign wealth fund, with the crown prince was a governance concern of some investors, the sources said.

The PIF (Public Investment Fund) will use the proceeds of the Aramco IPO sale to deliver on the prince’s ambitious domestic and economic reforms.

Newsletter

Related Articles

0:00
0:00
Close
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×