Saudi Aramco could finally launch long-awaited IPO next week

Saudi Aramco could finally launch long-awaited IPO next week
2 min read
29 October, 2019
The Saudi oil giant is preparing for the first phase of a hugely anticipated IPO.
Saudi Aramco's IPO has been years in the making [Getty]
Energy giant Saudi Aramco is ready to announce the launch its much-anticipated Initial Public Offering (IPO) next week, sources in Riyadh have told Reuters, after repeated delays.

The news agency said that three sources involved in the matter said that Saudi Aramco could begin its IPO on 3 November with trading for a 1 to 2 percent share of the world's biggest energy company beginning in December.

Aramco Chief Executive Officer, Amin Nasser, is reportedly in talks with "foreign investors" about the IPO, the news agency said, with Russia's sovereign wealth fund reportedly interested in buying shares in the oil giant.

Aramco could announce the transaction price on 17 November, and then begin trading on the local stock market on 11 December, the agency added.

Aramco did not respond to questions from Reuters about the claims.

"[Aramco] does not comment on rumour or speculation. The company continues to engage with the shareholders on IPO readiness activities. The company is ready and timing will depend on market conditions and be at a time of the shareholders’ choosing."

Saudi Crown Prince Mohammed bin Salman announced three years ago plans for the part privitisation of the company - said to be the biggest in the world - to help finance his ambitious diversification plans.

The $2 trillion valuation that Riyadh is hoping for is said to be overly optimistic by many industry experts.