Saudis insist giant Aramco flotation remains on track

SAUDI Aramco’s planned initial public offering remains on track, the company said yesterday, after Bloomberg reported that the oil company is preparing contingency plans for a possible delay by a few months into 2019. Saudi authorities are aiming to list up to 5pc of the world’s largest oil producer on both the Saudi stock exchange in Riyadh, the Tadawul, and one or more international markets in an IPO that could raise $100bn (€840m).

“The initial public offering of a stake in Saudi Aramco remains on track,” said Aramco in an email.

“The IPO process is well under way and Saudi Aramco remains focused on ensuring that all IPO-related work is completed to the very highest standards on time.” Bloomberg reported on Wednesday that the Saudi government is still aiming for the IPO of the stateowned oil giant in the second half of 2018.

However, that timetable is getting increasingly tight for what is likely to be the biggest share sale in history. Aramco has still not chosen an international venue for the listing although New York and London are seen as leading contenders.

It has hired advisers for the deal, but has not chosen global co-ordinators or bookrunners, banking sources have said.

Reuters reported last month that Saudi Arabia favours New York for the main foreign listing of Aramco, even though some financial and legal advisers have recommended London, citing people familiar with the matter.

(Reuters)