Aramco IPO Still on Target Says Saudi Arabai

Saudi Aramco’s initial public offering will take place in 2018 as planned and the listing venue will be revealed in due course, the company’s chief executive said in a CNBC interview broadcast on Monday.

“We have always said that we will be listing in 2018, and to be more specific, in the second half of 2018,” CEO Amin Nasser said, later adding: “The IPO is on track. The listing venue will be discussed and shared in due course.”

Aramco is preparing to list about 5 per cent of its shares in local and international stock markets. It has yet to choose an overseas market. Nasser rejected a report that China was emerging as a frontrunner in a possible plan to delay the IPO and sell shares to sovereign wealth funds, CNBC said.

“Saudi Aramco are not talking, as I said, to the Chinese or others,” he said.

Regarding the IPO process and possible venues for the listing, Nasser said all was still being considered.

“All of that analysis is being reviewed in detail … to make a decision at a certain stage, and we’re not going to be pushed, you know, by a journalist saying this needs to be talked about or not.”

Reuters reported last week that China was offering to buy up to 5 per cent of Saudi Aramco directly. The Financial Times reported earlier this month that the company was considering shelving IPO plans in favour of a private share sale to world sovereign funds and institutional investors.

Nasser also said Aramco will “meet all the requirements of that market in terms of reserve assessment” and other rules of the country where it chooses to list. He said Saudi Arabia was largely operating in line with its closest peers, such as Exxon Mobil and BP.

via Gulf Business

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza