Give me context… Saudi Arabia’s state-owned oil giant Aramco is going public. Aramco produces 10% of the world’s oil supply and is thought to be worth around $1.5 trillion.
This way Aramco becomes a publicly-traded company: anyone can buy shares (or parts of the company).
Why would Aramco go public?
Going public increases prestige and helps a company raise money to invest in future operations, expansion, or acquisitions.
Saudi Crown Prince Mohammed bin Salman’s said:
Some of the money Aramco makes, is expected to go toward investing in other industries. And getting more jobs for Saudis. Key, because unemployment in Saudi is over 10%.
This is thought to be a very good thing for Saudi Arabia as it will allow the kingdom’s economy to be less dependent on oil (by investing in other industries).
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