The new entity will raise money from investors in an IPO, which will form the basis of a war chest to buy a privately-owned clean energy business, sources said.
The proceeds from Saudi Aramco's record IPO have risen to $29.4 billion after the oil company exercised an option to sell 15% more stock, an executive at one of the banks leading the deal told Al Arabiya news channel.
OPEC and its allies plan to deepen oil cuts and have the deal in place so it runs at least until June 2020 as Saudi Arabia wants to deliver a positive surprise to the market before the listing of Saudi Aramco, two sources familiar with the talks said.
Saudi Aramco has received bids for its shares totaling $44.3 billion so far, lead manager Samba Capital said on Nov. 29, putting its initial public offering on track to be over-subscribed.
Saudi Aramco's weighting in Saudi Arabia's main stock index once the oil giant has listed shares is not expected to breach the maximum limit set by the Gulf kingdom's Tadawul exchange, a senior executive said on Nov. 24.
Saudi Aramco is worth up to $1.7 trillion at the price range set by the oil giant on Nov. 17, below the $2 trillion sought by Saudi's crown prince but putting it in the running to become the world's biggest IPO.
The imminent listing of oil giant Saudi Aramco will be a pivotal moment for Saudi Arabia's young and untested Tadawul stock exchange.
Valuation and foreign investor demand for Aramco’s IPO will be a big test for Riyadh with Saudi Crown Prince Mohammed bin Salman targeting a valuation of $2 trillion.
Saudi Aramco aims to announce the start of its IPO on Nov. 3, three people with direct knowledge of the matter told Reuters, after delaying the deal earlier this month.