IPO Anniversary
CEO on IPO: ‘We are truly in a league of our own’
One year later, the Initial Public Offering is hailed as a beacon of excellence and resilience.
Aramco president and CEO Amin Nasser has marked the first anniversary of the company’s historic Initial Public Offering (IPO) by saying that the Kingdom, Aramco management, and all employees should take “a tremendous sense of pride and appreciation” in what has been a transformational year with extraordinary challenges.
Nasser took time at the end of the weekly management call at Aramco’s Dhahran headquarters to reflect on the IPO, and a year in which the global economy has been severely impacted by the COVID-19 pandemic.
Addressing management from across the company, he described the IPO as “A moment that not only captured the attention of the world and made history for Aramco, but also highlighted the extraordinary transformation taking place in the Kingdom.”
It was on Dec. 11 last year that the company celebrated its milestone IPO and listing on Tadawul, Saudi Arabia’s stock exchange, making Aramco the largest publicly listed company in the world by market capitalization.
Aramco’s listing was the world’s largest and was covered 4.65 times by investor demand.
Post-IPO
With the company now in Equity Markets, shareholders must be provided with resilient value creation through crude oil price cycles and the maintaining of Aramco’s position as a major oil producer, capturing additional value across the hydrocarbon chain, and profitably growing the company’s portfolio.
As a publicly listed company, transparency and reporting are vital for our success. The establishment of the External Reporting function and Investor Relations enabled us to comply with regulatory requirements, as well as best-in-class reporting.
Nasser said that 2020 had witnessed unparalleled challenges as the energy industry worldwide grappled with the effects of the COVID-19 pandemic.
“With COVID-19,” he added, “it’s easy to forget such a historic accomplishment — it seems like such a long time ago.
Robust process
“But, looking back, the robust process of preparing for the public listing did two important things. Pre-IPO, as we analyzed data and reviewed every process to show the company to investors, it helped us realize where our true strengths really are.
It highlighted what is so unique about this great company — not just within the Kingdom, but also internationally. The awareness and appreciation for Aramco, and all that we do, came to be better recognized.
— Amin Nasser
Preparing for the listing, he said, “Was like painting a picture with a thousand different paint brushes — a thousand different colors.”
Laying the groundwork for the IPO involved a jigsaw of complex elements, including an independent reserves evaluation and a third-party review of greenhouse gas emissions for our in-Kingdom wholly owned operated assets.
Prior to the IPO, in April 2019, Aramco completed its inaugural bond issuance, which received record demand of over $100 billion in orders, being over 10 times subscribed, making it the largest ever in an emerging market.
And just as momentum was building toward the IPO, the attacks on Khurais and Abqaiq took place, but were successfully overcome.
“Our response, as you know, was a pivotal moment showing the world our strength, what we stand for, and what this company is capable of,” said Nasser.
Resilience
Throughout 2020, Nasser noted, the company and its management teams and employees have demonstrated extraordinary resilience.
“In a year where prices and demand took a hit due to COVID-19, we have continued to demonstrate our resilience to overcome any challenge thrown at us.”
“We will need to be better prepared and adapt to different business and market conditions. That means we must stay focused, remain united, and never let anything break our spirit or our belief that, when we work together, there is nothing we cannot accomplish.
“So, on the first anniversary of the IPO, I want to say ‘thank you’ for being a strong team and for continuing to build a company that each one of us can be proud of.
“We showed the world what Aramco is made of, and that we are truly in a league of our own.”