#Saudi Aramco Plans to Boost Dividend to Tempt IPO Investors - Bloomberg

Saudi Aramco Plans to Boost Dividend to Tempt IPO Investors - Bloomberg:

Saudi Aramco will increase dividend payments and pay less tax as the government tries to secure the $2 trillion valuation targeted by Crown Prince Mohammed bin Salman in the state oil company’s initial public offering.

But should Aramco meet the prince’s target, the proposed payout of $75 billion next year would still leave dividend yields below those already offered by competitors like Exxon Mobil Corp. and Royal Dutch Shell Plc.

The state-run company, which produces about 10% of the world’s oil, plans to announce its intention to float later this month with the aim of selling shares on the Riyadh stock exchange as soon as November. The IPO is the centerpiece the crown prince’s plans to revamp the Saudi economy and will release billions in capital for the kingdom’s sovereign wealth fund.