Tags: saudi | aramco | ipo | prospectus

WSJ: Aramco IPO Prospectus Due Before Month-End

WSJ: Aramco IPO Prospectus Due Before Month-End
(Mohamed Ahmed Soliman | Dreamstime)

By    |   Wednesday, 09 October 2019 07:59 AM

Saudi Aramco, the world’s biggest oil company, reportedly is expected to file its IPO prospectus by the end of the month.

The Aramco IPO was delayed in 2018, reportedly over Saudi officials’ concerns about public scrutiny of the company’s finances, the Wall Street Journal said.

The Saudi state oil company could float 1% to 2% of its shares on its domestic exchange by late November or early December, WSJ.com said.

The prospectus will reportedly first be published in Arabic on Oct. 25 and then in English two days later, according to a timeline seen by the Journal.

The state-owned oil enterprise will list its shares on Saudi Arabia’s Tadawul exchange, as part of Crown Prince Mohammed bin Salman’s economic reform plan.

The crown prince has indicated that he wants a valuation of $2 trillion, though analysts and Aramco officials have valued Aramco at closer to $1.5 trillion.

Meanwhile, Saudi Aramco's chief executive said on Wednesday there would be no impact on the stock market listing plans of the state oil giant after attacks on its installations last month, which he blamed on Iran.

Attacks such as those on Sept. 14, which sent oil prices up as much as 20%, may continue if there is no concerted international response, Amin Nasser told the Oil & Money conference in London, Reuters reported.

The attacks targeted the Abqaiq and Khurais plants at the heart of Saudi Arabia's oil industry, causing fires and damage and shutting down 5.7 million barrels per day (bpd) of production - more than 5% of global oil supply.

"An absence of international resolve to take concrete action may embolden the attackers and indeed put the world's energy security at greater risk," Nasser said in rare political comments.

"You heard the minister of foreign affairs and I think he spoke enough about (where) the attacks (are) coming from. It’s instigated by Iran for sure, there's no doubt."

Yemen's Houthi group claimed responsibility for the attacks, but a U.S. official said they originated from southwestern Iran. Riyadh blamed Tehran. Iran, which supports the Houthis in Yemen's war, has denied any involvement.

Saudi Arabia has maintained supplies to customers at levels seen before the attacks by drawing from its huge oil inventories and offering crude grades from other fields.

Nasser added that the attacks had no effect on Aramco's revenues because the company continued to supply customers as planned. The attacks also had "no impact on the (initial public offering) whatsoever," he said.

Saudi Arabia is pressing ahead with plans to sell between 1% and 2% of Aramco through a local listing, which might be followed by additional share sales internationally.

An IPO prospectus in Arabic could be released to investors on Oct. 25 and an English one for the wider market on Oct. 27, sources have told Reuters.

Nasser said Aramco was on track to regain its maximum oil production capacity of 12 million bpd by the end of November and that October crude output stood at 9.9 million bpd.

The kingdom's crude oil production capacity is now 11.3 million bpd, the Saudi energy minister, Prince Abdulaziz bin Salman, said last week. 

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Saudi Aramco, the world’s biggest oil company, reportedly is expected to file its IPO prospectus by the end of the month.
saudi, aramco, ipo, prospectus
Wednesday, 09 October 2019 07:59 AM
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