By October 13, 2017 0 Comments Read More →

Saudi Aramco IPO may be shelved in favour of selling private shares to investors, sovereign funds

Saudi Aramco IPO

No final decision on the Saudi Aramco IPO has been made, but the Financial Times reports it could be shelved and replaced by a private sale. 

Saudi Aramco IPO under review

The Saudi Aramco IPO, potentially worth billions of dollars to the Saudi’s state-owned oil company, may be shelved and replaced by a private sale to world sovereign funds and international investors, according to the Financial Times.

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FT sources say in recent weeks, talks with foreign governments, including China, as well as other investors have increased in recent weeks.

The report said Saudi Aramco would still list its shares on the Saudi Arabian exchange Tadawul in 2018 even if it pursues the private sale.

But, no final decision has been made and the Saudi Aramco IPO could still go ahead next year, according to the Financial Times.

“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,” a Saudi Aramco spokesman said.

Earlier in the year, Saudi Aramco appointed JPMorgan Chase & Co, Morgan Stanley and HSBC as international financial advisers for the IPO, according to Reuters’ sources.

Reuters reports JPMorgan and Morgan Stanley have both declined comment.

In Moscow earlier this month, senior Saudi officials said the plan to list Saudi Aramco in 2018 was on track.

Posted in: Energy Financial

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