Sina U. S. stocks on November 3 Saudi Arabia is reported to be making concessions in valuation to ensure the success of Saudi Aramco's initial public offering (IPO).

Saudi Arabia is prepared to accept a valuation of less than $2,000bn, the value of the state-owned oil giant that Crown Prince Mohamed Mohammed bin Salman has long insisted, according to people familiar with the matter. The target for the valuation of Saudi Aramco is $1.6 trillion-$1.8 trillion, according to people familiar with the matter.

Saudi Aramco is also considering increasing its dividend next year by another $5 billion to $80 billion to win over investors, according to people familiar with the matter.

Saudi Arabia will formally announce its intention to list on Sunday and launch a six-week sales campaign before starting trading on the Riyadh exchange in mid-December, according to people familiar with the matter.

While Saudi Arabia's richest families will support IPO demand, bankers are still trying to attract international investors and have invited fund managers in London to meet next week, according to people familiar with the matter. Higher dividends will complement these efforts.

Saudi Aramco is the most profitable company in the world and a pillar of Saudi economic and social stability. Its public listing is the biggest change in the Saudi oil industry since it was nationalised in the 1970s.

Since Crown Prince Mohamed first proposed IPO in early 2016, Saudi Arabia and Saudi Aramco have adjusted the company's tax burden to increase profits and thus make the company more attractive to investors. Riyadh first cut the income tax paid by Saudi Aramco and recently reduced the royalties it pays when oil prices are relatively low. The measures boosted Saudi Aramco's valuation, but almost all analysts and investors said they were not enough to reach the $2, 000bn valuation.

To further enhance the attractiveness of the stock, Saudi Aramco has announced plans to pay a $75 billion dividend next year. It is now under consideration to increase it to $80 billion. At a valuation of $1.8 trillion, that means a yield of 4.4%, a good return in a world of low interest rates.

Investors in the IPO have been assured that dividends will not fall until 2024, no matter how oil prices change. If the total dividend has to be reduced, Saudi Aramco will cut its dividend to the government.