Saudi market regulator approves Aramco's share offering

Saudi Arabia's market regulator on Sunday announced its approval for the initial public offering of the state-run oil giant Aramco.

In a statement, the Capital Market Authority (CMA) said Aramco's prospectus, including its financial statements, activities and management, "will be published prior to the start of the subscription period", Efe news reported "The CMA's approval on the application shall be valid for six months from CMA Board resolution date," the regulator said.

"The approval shall be deemed cancelled if the offering and listing of the company's shares are not completed within this period."

Last week, the Dubai-based Saudi-owned Al Arabiya broadcaster reported the subscription for shares would start on December 4 and shares would start trading on the Kingdom's stock exchange a week later.

This is one of the main elements of the Vision 2030 launched by Crown Prince Mohammed bin Salman to diversify the Saudi economy.

The Crown Prince, who wants to eventually list a total of 5 per cent of the company, first suggested the share sale in 2016 but it was delayed several times since then.

Aramco, which pumps 10 per cent of the world's oil, has been the backbone of the Kingdom's economic stability since it was nationalized in the 1970s.

The oil giant disclosed its financial results for the first time in history in August, saying it achieved a net profit income of $46.9 billion during the first half of 2019, 11.3 per cent less compared to the same period last year.