Saudi Aramco announced that it aims to pay a $75 billion dividends in 2020 as it prepares for an initial public offering (IPO), Pipeline Oil and Gas News reported.
According to a document by the company, Aramco would have “a progressive growing dividend on sustainable basis at board discretion.”
The document notes that the company’s progression scheme is set with a marginal rate at 15% up to $70 per barrel, 45% between $70 and $100, and 80% if the price rises higher.
“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.
Aramco will allocate 5% of its %2 trillion to the domestic market in 2020. The $100 billion listing topples the largest IPO in history, which was estimated at $25 billion.