Will Aramco's push into green energy be selling point for IPO?

London

ARAMCO is the world's largest oil company, but when it sells shares next year its foray into renewables is what may lure investors who would otherwise be forced to stay away.

Saudi Arabian Oil Co, as it is formally called, is considering investments of as much as US$5 billion in renewable energy, part of the kingdom's effort to reduce the amount of oil feeding domestic energy needs.

That programme and signs that King Salman's government is finally making good on its vows to dramatically expand use of photovoltaics underpin the credibility of Aramco's embrace of environmental and sustainability goals, measures that investors increasingly are looking for.

"They immediately open themselves up to a larger pool of investors," said Scott Gehsmann, partner at the deal advisory service of the accounting and consulting firm PwC. "If a company is looking at raising capital, they typically must have a strategy around sustainability. If they don't have one, …