Saudi Arabia Cancels Aramco IPO Plans

Saudi Arabia has scrapped its plans to list shares of its state-owned energy giant Aramco on stock exchanges, Reuters reports.

The initial public offering was poised to be the largest ever and was at the center of Crown Prince Mohammad bin Salman’s ambitious plan to overhaul the Saudi economy.

West Texas Intermediate graph

Doubt has been swirling around the IPO as the Saudis delayed making a decision on where to list shares overseas.

The kingdom will no longer seek to publicly list shares on its domestic stock market, the Tadawul, or on foreign exchanges, several sources told Reuters. One source said the decision to cancel the IPO had been made “some time ago” but no announcement had been made.

Saudi Aramco has dismissed advisers working on the deal and is now focusing on acquiring a stake in Saudi Basic Industries, a domestic petrochemical company, two of the sources told Reuters.

via CNBC

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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