MSCI expects to add Aramco to Saudi Arabia index from time of IPO

Global equity index compiler MSCI on Thursday said it will include state-run Saudi Aramco in its Saudi Arabia Index at the time of the oil giant’s initial public offering (IPO).

"Saudi Aramco will be included in the MSCI Saudi Arabia Index at the time of the IPO as long as it fulfills all eligibility criteria, including the listing of the company’s shares on an eligible stock exchange and related market segment, e.g., Tadawul’s Main Market, MSCI added in a statement on the potential reclassification of the Saudi Index.

The index compiler's conclusion is expected to be announced in June 2018, as part of the regular MSCI 2018 Market Classification Review, the statement added.

In June 2017, MSCI added Saudi Arabia to a watch list for a potential upgrade to emerging market status, a move that could allow the Kingdom to lure billions of inflows on inclusion in the MSCI Emerging Markets Index, Argaam reported.

Saudi Arabia plans to sell 5 percent of Aramco shares in H2 2018, in what is expected to be the world’s largest ever IPO.