Prospectus made public allows a glance into world's largest oil producer but doesn't say how large a stake it intends to sell.

Saudi Aramco's long-anticipated IPO finally begins next month.
Saudi Aramco's long-anticipated IPO finally begins next month. (AP)

Saudi state oil giant Aramco unveiled the long-awaited prospectus for its initial public offering (IPO) on Saturday, laying out the main material risks that may adversely affect the company's business or its financial position.

Aramco is the world's largest oil producer, pumping 10 percent of global supply, and its most profitable. 

The IPO will begin on November 17, with a final share price to be determined on December 5, a day after subscriptions close. 

After years of delay and false starts, the state-owned company last week said it will sell an unspecified number of shares on the Riyadh stock exchange in what is expected to be the biggest IPO in history.

Retail investors in Saudi Arabia appear to be salivating at the prospect of owning a piece of the world's most profitable company, seen as the kingdom's crown je wel.

In its newly released 658-page prospectus, Aramco said it will sell a part of its shares to institutional investors, including foreign companies, as well as to individual Saudis and other Gulf nationals.

The company said it has decided to sell up to 0.5 percent of its shares to individual investors while it will decide on the percentage for larger investors later.

"The targeted percentage of Offer Shares allocable to individual investors will be up to 0.5 percent of the shares," the prospectus said.

The company said it will determine the percentage to be sold t o institutional investors after consultations with its financial advisors and global coordinators consisting of major international banks.

Even though the size of the IPO has not yet been disclosed, it is expected to be the biggest ever, raising over $30 billion.

The prospectus said the offering period will start on Sunday, November 17, ending on November 28 for individual investors and on December 4 for institutional investors.

The company will set a price range for the shares on November 17 but the final price will only be determined on December 5, the day after all subs criptions close.

"Trading of the shares is expected to commence after all relevant legal requirements and procedures have been completed," the company said without setting a specific date.

Many risks

Weaker oil prices cut its first half net profit by 12 percent to $46.9 billion this year, but the figures still overshadowed Apple, the world’s most profitable listed company, which made $31.5 billion.

The prospectus also referred to risks its business faces such as the impact of climate change on the demand and price of hydrocarbons. 

Political and social instability, unrest, actual or potential armed conflicts in the Middle East and North Africa and other areas may affect Aramco's operations and financial position.
Terrorism and armed conflict may materially and adversely affect the market price of its shares.

Source: TRTWorld and agencies