RadioOnFire.com – Saudi Aramco, the world’s most profitable company, announced plans for its first public stock offering next month, and they’re poised to make history with the biggest IPO ever. The oil giant owned by the Saudi government is expected to sell between 1%-3% of the company to the public in an unspecified number of shares. Bankers have advised that while Saudi Crown Prince Mohammed bin Salman initially valued the company at $2 trillion in 2016, the valuation is now closer to $1.5 trillion.
While sharing its numbers in preparations for the IPO, it was revealed that Saudi Aramco buys a barrel of oil from the ground for $2.80, which it can then sell for $62 per barrel. In comparison, U.S. fracking companies are lucky to break even at $50 a barrel, according to Ellen Wald, author of Saudi, Inc., a book about the history of Saudi Arabia and Aramco. Wald also revealed that Saudi Aramco has access to the largest conventional oil resources on the planet.