Aramco IPO still on, says Saudi

Riyadh : Saudi Arabia yesterday rejected reports that Aramco’s planned initial public offering had been scrapped, saying the kingdom had stepped up preparations for the stock market debut of the state energy giant. “The government remains committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum,” energy minister Khalid al-Falih said in a statement.

The plan to float around five percent of Aramco -- expected to be the world’s largest stock sale -- forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the economy off its reliance on oil. But Aramco executives have repeatedly cited unfavourable market conditions to push back the IPO, earlier scheduled for this year, with many observers sceptical whether the listing will happen at all.

Fresh speculation about the listing swirled late Wednesday after a media report that the kingdom had halted the plan and financial advisors working on it had been disbanded. London, New York and Hong Kong have all vied for a slice of the much-touted IPO. But experts say Aramco’s inability to generate a $2 trillion valuation sought by the crown prince and legal concerns that the IPO will invite unprecedented scrutiny to the company have prompted indecision and delays. Falih, however, insisted that the kingdom had boosted preparations for the listing.