Saudi Aramco is considering shelving plans for an international listing in favour of a private share sale to the world’s biggest sovereign wealth funds and institutional investors. The latest proposal by the company’s financial advisers was described by one of the people as a “face-saving” option for Saudi Aramco, which has worked on plans to list its shares internationally for more than a year.
Saudi Aramco said: “A range of options, for the public listing of Saudi Aramco, continue to be held under active review. No decision has been made and the IPO process remains on track.” Another person said a combined private placement and domestic listing, which would be easier to execute, would boost the company’s valuation and bolster the development of the Saudi market.
For advisers working on the IPO, delaying the listing buys them more time to solve the more complex problems, said a person familiar with the matter, for example around disclosure requirements, antitrust rules or listing requirements.
Source Credit: Financial Times
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