Saudi Arabian Oil Co., most popularly known as Saudi Aramco, is yet to finalize a date for its long planned initial public offer, but reports said, citing Saudi Arabian officials, that the IPO most likely would be conducted in the second half of 2018.
Saudi Aramco Chief Executive Officer Amin Nasser told Bloomberg that the country has promised to reduce the overall tax rate paid by the state-owned energy giant to make its 2018 IPO more appealing to investors. At present, Aramco pays a 20 percent royalty on its revenue along with an 85 percent tax on income.
In the IPO, which is said to be the world’s biggest ever IPO, the government plans to sell up to 5 percent of the company. Since early last year, Saudi Aramco officials have been working various details of the offer.
Meanwhile, reports said that a cut in Aramco’s tax rate may not be necessary as the company is making profit with the…