Saudi Arabia announced Friday (January 5th) that Aramco had been granted new status allowing individuals to hold shares in the oil giant, which it aims to float on the stock market this year, AFP reported.
A bulletin published in the kingdom's official gazette said the cabinet had approved giving joint-stock status to Aramco effective January 1st.
The move comes as the kingdom prepares to sell under 5% of state-owned Aramco, the crown jewel of its economy, in what is expected to be the world's largest ever initial public offering.
The flotation forms the cornerstone of a reform drive led by Crown Prince Mohammed bin Salman to wean the economy off its reliance on oil.
Managed by a board of directors, rather than directly by government, joint-stock companies allow individuals to hold stock and thus share in both the debt and profit of the company.
A provisional board of directors -- Aramco's first ever -- will be appointed based on the recommendation of the kingdom's oil minister, the bulletin said.
The state will retain direct ownership of the majority of Aramco shares, according to the gazette.
Aramco CEO Amin Nasser has said the IPO is scheduled for the second half of 2018.
