By: Mahmoud Salah Eldin

Riyadh - Mubasher: The awaited IPO of Saudi Aramco is expected to be the biggest in the world, and it is believed to include capital and operational assets, and not oil fields or reserves.

However, amidst the contentious fluctuations in oil prices, a stable oil price for evaluation has not been set.

Kuwaiti oil expert Kamel Al Harami told Mubasher it remains unclear how the largest oil company in the world will deal with a number of factors regarding at the IPO, whether it will fully disclose oil reserves, will Aramco or the Saudi government have the rights in future discoveries, as well as the stock evaluation, and will it based on current or future crude prices.

Saudi Aramco’s market capital was earlier forecasted by EFG Hermes to reach $1 trillion to $1.5 trillion.

Al Harami also indicated that it is not clear whether the IPO will include local and overseas refineries, as well as projects in non-oil sectors, such as hospitals, universities, and stadiums.

Global stock exchanges have strict rules when it comes to disclosure, he added, noting that this will force Aramco to more transparency.

The London Stock Exchange (LSE) is the most likely destination for the awaited IPO, having a better chance than the American bourse, according to Al Harami.

Osama Al Falali, professor of economy in King Abdulaziz University said that the percentage of the 5% offering is small, noting that it includes all of the company’s operations such as refineries.

The Saudi minister of energy, industry and mineral resources, Khalid Al Falih previously said that oil reserves are owned by the kingdom not the company, stressing that legal studies will be conducted to assure that the public offering does not include the strategic oil reserves.