Saudi Shura rejects allocating Aramco’s shares to retail, institutional investors

Saudi Shura Council has rejected a proposal to allocate 50 percent minimum of Saudi Arabian Oil Co.’s (Saudi Aramco) shares to local retail and institutional investors in the planned IPO, Saudi Press Agency (SPA) has reported.

The council’s decision was based on the fact that the domestic market will unlikely absorb Saudi Aramco's planned stock flotation, which is considered the market’s biggest share sale. Thus, the entrance of foreign investors will help pump fresh cash into the market.