Aramco Converted Into Joint-Stock Co.

Saudi Arabia has changed the status of its national oil giant Aramco to a joint-stock company as of Jan. 1, in a key step for an initial public offering planned for later this year. The sale of up to 5% of Saudi Aramco, expected to go ahead in the second half of 2018, is a centerpiece of Vision 2030, an ambitious reform plan to reduce the dependence of Saudi economy on oil, Reuters reported. The plan is championed by Saudi Crown Prince Mohammad bin Salman. The change, which was published in a Cabinet decree in the kingdom’s official bulletin on Friday, is a requirement for local companies in Saudi Arabia ahead of listing, a senior Aramco source, who declined to be named, told Reuters. “As a customary step in the preparation process for a Saudi IPO, Saudi Aramco has converted to a joint stock company,” the source said. “This establishes the framework to allow future investors to hold shares in the company alongside its shareholder, the government.”