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News // Markets & Stocks

Saudis said to prepare for possible Aramco IPO delay to 2019

14 September 2017 , 18:00Neftegaz.RU229

Saudi Arabia is preparing contingency plans for a possible delay to the initial public offering of its state-owned oil company by a few months into 2019, according to media reports on September 14, 2017.

 

Bloomberg cited sources as confirming the government was still aiming for the IPO in the 2nd half of 2018 but due to the tight timetable it could be pushed back into 2019.

 

Saudi Aramco told the publication the IPO remains on track and the process was well underway, echoing assurances to investors on September 9 after it was reported the kingdom was scaling back its reform efforts.

 

However, several major decisions have yet to be taken that could limit the ability for the company to sell shares before the end of next year.

These include the location for a secondary listing outside of Saudi Arabia’s Tadawul stock exchange, with an announcement of the winner between London and New York expected to be made in October.

 

Analysts have also speculated that weaker oil prices at present could see Aramco valued at less than the government’s $2 trillion estimate.

Should the $2 trillion valuation be achieved the planned 5 %  stake sale would raise around $100 bln.

 

Last week, the Financial Times cited a document as confirming the Saudi government was pushing back many of the objectives of its 2020 reform plan amid concerns the pace of change was hurting the economy.

 

To read the news in Russian.

 

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