Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) is expected to see a growing foreign fund inflow that in return will ease the planned initial public offering (IPO) of Saudi Aramco, CEO Khalid al-Hussan has said.

Overseas investors are pumping more liquidity which positively affects the bourse, Reuters reported, citing al-Hussan as saying.

“What we have seen at the beginning of this year from foreign investor participation and the cash inflows and the number of registered QFIs in the market, gives us a very comfortable state,” the CEO noted.

From technical and regulatory perspectives, Tadawul is ready to handle the share sale of the world's largest oil producer, the top official added.

Al-Hussan further noted that the upgrade of the Saudi bourse by FTSE Russell to emerging market (EM) status is expected to lure further investments to the domestic market.

The kingdom’s government had previously revealed its plans to sell about 5% of Aramco which is projected to raise as much as $100 billion.

In 2016, the Saudi Crown Prince Mohammed bin Salman started discussions about floating a 5% stake in Aramco.

The CEO gave no further detail on the timing of the Aramco offering, however, officials said it would happen by the end of this year.

In March, Saudi Crown Prince said that the Aramco IPO could take place at the end of 2018 or in early 2019, relying on market conditions.