Dhahran, Saudi Arabia/Dubai — Saudi Aramco has created a subsidiary to house its multibillion-dollar pension fund and could spin off its aviation division as it restructures some assets not related to oil and gas ahead of its planned initial public offering (IPO), sources said. The aim is to streamline Aramco’s operations, which could make it easier to value since its business risk would be clearer and that may help it achieve a higher price for its shares, financial and industry sources said. "This makes Aramco a leaner company," said one source familiar with Aramco’s plans. The state-owned oil giant declined to comment. The listing of Aramco, which is likely to happen in 2019, is the centrepiece of the government’s ambitious Vision 2030 plan to diversify the kingdom’s economy beyond oil. Crown Prince Mohammed bin Salman expects the IPO to value Aramco at a minimum of $2-trillion, meaning a sale of 5% could raise $100bn to help fund Vision 2030 projects. Analysts have valued Aramco...
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