The IPO Aimed at Iran

Saudi Arabia is considering a new strategic ally in its cold war against Iran: The world’s 330 million owners of publicly traded stock.

Saudi Arabian Oil confirmed on Jan. 8 that it’s studying options for a possible initial public offering. Why would Saudi Aramco, as the world’s biggest oil company is known, auction off part of itself amid the lowest oil prices in 12 years? Some Saudi watchers say the kingdom needs cash for economic diversification. Others believe that Deputy Crown Prince Mohammed bin Salman, King Salman’s swashbuckling 30-year-old son, is hoping that outside shareholders and directors can force the state-owned behemoth to become more accountable and efficient. He’s the one who first disclosed the IPO idea, in an interview with the Economist. “Emir Mohammed is trying to redo things very quickly, from the bottom up,” says Sadad al-Husseini, who ran Aramco’s exploration and production operations from 1985 to 2003.