Saudi Arabia’s Capital Market Authority (CMA) has issued a resolution approving Saudi Aramco’s application for the registration and offering of part of its shares on the Saudi Stock Exchange (Tadawul) in Riyadh.

The move clears the way for the highly anticipated initial public offering (IPO) of Aramco’s shares, which is expected to be the biggest such exercise in global financial history.

Aramco’s prospectus will be published prior to the start of the subscription period, a statement from the CMA said.

Aramco is expected to announce the timing, size, scope and other details of its landmark IPO later on 3 November in Dhahran, where the energy giant is based.

The CMA prospectus includes all relevant information that the investor needs to know before making an investment decision, including the company’s financial statements, activities and management.

The CMA’s approval of the application is valid for six months from the CMA Board resolution date of 3 November 2019, and would be deemed cancelled if the offering and listing of Aramco’s shares are not completed within this period.

The CMA in its statement said: "A subscription decision without reading the prospectus carefully or fully reviewing its content may involve high risk. Therefore, investors should carefully read the prospectus, which includes detailed information on the company, the offering and risk factors.

"Thus, providing potential investors the ability to evaluate the viability of investing in the offering, taking into consideration the associated risks. If the prospectus proves difficult to understand, it is recommended to consult with an authorised financial adviser prior to making any investment decision."

The regulatory agency added that approval of the application should "never be considered as a recommendation to subscribe in the offering of any specific company".

"The CMA’s approval on the application merely means that the legal requirements as per the capital market law and its implementing regulations have been met," it said.