ZCZC
BCN-45
SAUDI-ARAMCO-IPO-OIL-STOCK
Saudi Aramco ‘absolutely ready’ for IPO: minister
RIYADH, Oct 25, 2018 (BSS/AFP) – Saudi oil giant Aramco is “absolutely
ready” for its long-awaited IPO but several regulatory procedures remain, the
kingdom’s economy minister told the Future Investment Initiative conference
in Riyadh on Thursday.
After reports that the initial public offering had been scrapped, Crown
Prince Mohammed bin Salman said early this month that it will go ahead in
late 2020 or at the start of 2021, two years later than expected.
Saudi Arabia plans to sell up to five percent of the world’s largest
energy firm and hopes to raise up to $100 billion.
The crown prince denied that the kingdom had halted the plan after a media
report said that financial advisors working on it had been disbanded.
“In terms of readiness, the company is absolutely ready to the best of
global standards,” Economy and Planning Minister Mohammed al-Tuwaijri told
the Future Investment Initiative (FII) conference.
He said all the financial requirements for the equity sale were ready and
a new board was in place.
But lengthy regulatory processes still needed to be completed, especially
over the planned acquisition of a majority stake in Saudi petrochemicals
giant SABIC.
Aramco CEO Amin Nasser told the FII on Tuesday that the government
remained committed to the IPO.
But he also said Aramco still needed to go through long regulatory
processes including closing the acquisition of SABIC that could cost well
over $70 billion.
The IPO — expected to be the world’s largest stock sale — forms the
cornerstone of a reform programme envisaged by Prince Mohammed to wean the
Saudi economy off its reliance on oil.
BSS/AFP/HR/1455