Saudi Arabia Denies Calling Off Aramco IPO

Saudi Arabia on Thursday rejected reports that Aramco’s planned initial public offering had been scrapped.

“The government remains committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum,” Energy Minister Khalid Al Falih said in a statement.

The plan to float around 5% of Aramco – expected to be the world’s largest stock sale – forms the cornerstone of a reform programme envisaged by Crown Prince Mohammad Bin Salman to wean the economy off its reliance on oil.

Falih refused to specify the timing for the IPO, reiterating that it depended on “multiple factors, including favourable market conditions and a downstream acquisition which the Company will pursue in the next few months”.

He did not elaborate on the acquisition but Aramco chief executive Amin Nasser last month confirmed preliminary talks to acquire a “strategic stake” in SABIC, the world’s fourth-largest petrochemicals company that is 70 per cent owned by the government-run Public Investment Fund (PIF).

Nasser had acknowledged in an interview to Al Arabiya television that a potential SABIC deal would “affect the time frame for Aramco’s initial public offering”.

 

Source Credit: Gulf News

 

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