Saudi Aramco, the state energy firm of Saudi Arabia, plans to pay a base dividend of US$75 billion in 2020, it said in a corporate overview as it prepares for an initial public offering (IPO).
The energy giant plans to list about 5 per cent of the company as early as next year in the domestic market, while a second international listing could come later. Aramco is officially valued at $2 trillion, which would translate to a listing of $100 billion, dwarfing the largest public offering in history of Ali Baba at $25 billion.
The document said the company would have “a progressive growing dividend on sustainable basis at board discretion.”
“For the years 2020 to 2024, if annual dividends declared would have been less than $75 billion, dividends to non-Government shareholders are intended to be prioritised so that they receive their pro-rata share of a $75 billion equivalent dividend,” the company said in the document, adding that the remaining amount of dividend will be received by the government.
It also mentioned the company’s “progressive royalty scheme”, with a marginal rate set at 15 per cent up to $70 per barrel, 45 per cent between $70 and $100, and 80 per cent if the price rises higher.