FIRST CRACK IN 2018 ARAMCO LISTING PLAN
IPO will take place ‘when the time is right’, says minister
SAUDI Arabia’s oil minister said the initial public offering (IPO) of oil giant Saudi Arabian Oil Co (Aramco) would take place “when the time is right”, revealing the first crack in the kingdom’s earlier plan to debut the company this year.
“We hope that 2018 will be the right time but ultimately we have to make sure the market is ready,” said Energy, Industry and Mineral Resources Minister Khalid Al-Falih at the World Economic Forum, here, on Wednesday.
“We are ready for the listing but we have to be sure the market is ready, that the time is right, and we will calibrate that as we get closer,” he said.
The comments were the first wobble in Riyadh’s long-standing assurances that the IPO was “on track and on time” for the second half of this year.
The Aramco offering would be one of the biggest events in financial markets this year and any alteration is of significant interest to global investors. Saudi officials said they hoped to raise a record US$100 billion (RM389.74 billion), valuing the company at more than US$2 trillion.
The IPO is the brainchild of Crown Prince Mohammed Salman as the cornerstone of his Vision 2030 programme to re- form the country’s oil-dependent economy. Privately, Aramco executives and advisers said if the government were to give its green light soon, a listing during the second half of this year in Riyadh was possible, but that additional listings in London or New York would be very difficult.
Earlier, Aramco chief executive officer Amin Nasser drew a distinction between preparatory work for an IPO this year, which he said was complete, and the decision to go ahead with the actual sale, which was in the hands of the royal court.
He also said the kingdom’s rulers had yet to decide on the location for a second listing outside Riyadh.
“We are currently waiting for the decision from the shareholder,” Nasser said, referencing the government.
Asked whether the IPO could be postponed to 2019, Nasser said: “We don’t know. It’s all depending on how soon we hear about the second venue. But currently, we’re ready for the second half of 2018.”