16.05.2022

Saudi Aramco may refuse to conduct an IPO on international platforms

State Oil Company of Saudi Arabia Saudi Arabian Oil Co. (Saudi Aramco) may refuse to conduct an initial public offering (IPO) on international markets, according to The Wall Street Journal, citing sources familiar with the situation.

“Officials from Saudi Aramco are considering abandoning their plan to hold an IPO in New York, London or any other international exchange and may instead offer their shares only on the Riyadh exchange,” the newspaper writes.

It notes that Saudi Arabia has received an offer from a Chinese investor interested in acquiring a stake in the state oil company and is currently considering its terms.

According to another plan of the company, Saudi Aramco can conduct an IPO in two stages: in 2018, it can be listed on the Saudi stock exchange, and then on the international stock exchange. According to sources, the company considers it unlikely that an IPO will be held on an international exchange before 2019.

The listing was previously planned for 2018. Last week, Saudi Arabia’s Energy Minister Khalid al-Falih confirmed that the country is not changing plans for an IPO in the second half of 2018. During the IPO, Aramco can raise about $ 100 billion through the sale of about 5% of the shares.

Saudi Aramco is the national oil company of Saudi Arabia, founded in 1933. The headquarters is located in Dhahran. The company controls almost all of the country’s oil production facilities.

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