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WSJ: Saudi Aramco IPO Preparations Are Said to Stall

Image: WSJ: Saudi Aramco IPO Preparations Are Said to Stall
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By    |   Friday, 06 July 2018 09:18 AM

Saudi Aramco and the country aren’t ready for an IPO that could raise $100 billion but also bring unprecedented scrutiny to the company, the Wall St. Journal reported, citing Saudi officials and people close to the process.

Aramco, the world's biggest oil producer, has been expanding its global footprint by signing downstream deals and boosting the capacity of its plants ahead of the eagerly awaited initial public offering.

The company's public listing is a part of Saudi Arabia's plan to open its economy.

“Everyone is almost certain it is not going to happen,” a senior executive at Aramco, speaking of the IPO, told the Wall Street Journal.

A company spokesman declined to comment, and representatives for the Saudi energy ministry and the government didn’t respond to questions, the Journal said

The company invited law firms to Dubai to pitch for a possible role in the IPO earlier this year and later told them they had no plans to make a decision anytime soon, people involved in the process said

Saudi officials say they have determined that listing on a large stock exchange in New York, London or Hong Kong would carry too many legal risks

They have also soured on a backup plan of listing only a tiny part of the company on the Saudi stock exchange Tadawul

A decision on what to do rests in the hands of Crown Prince Mohammed bin Salman, the Journal said

(Newsmax wire services Reuters and Bloomberg contributed to this report).

© 2018 Newsmax Finance. All rights reserved.

   
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Public listing preparations of state-run Saudi Aramco have stalled, the Wall Street Journal reported.
saudi, aramco, ipo, public, listing
247
2018-18-06
Friday, 06 July 2018 09:18 AM
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