Aramco listing: A much-awaited market debut

PARIS: State-owned oil giant Saudi Aramco fired the starting gun yesterday on its stock market debut, which could be the biggest in history. The journey to the historic listing is a saga that began in 2016.

Here are some key dates.

Plans unveiled

In January 2016, Deputy Crown Prince Mohammed bin Salman-as he was then-tells The Economist that Saudi Arabia is considering issuing shares for Saudi Aramco in an initial public offering (IPO). It is the first time a proposed listing of the world’s largest crude oil producer had been made public. The oil giant quickly confirms the plan, which would make it the first major stateowned oil firm in the Gulf to be floated on the market. In April 2016, Riyadh makes official its intention to float up to five percent of Aramco. The state energy giant announces in September that it aims to launch the IPO in 2018.

First of the delays

As experts raise doubts over the projected timeline for a listing, Aramco says in October 2017 that it will take place in the second half of 2018. On January 1, 2018 Riyadh announces that Aramco has been granted a joint-stock status allowing individuals to hold shares.

London’s Financial Times reports on March 12 that the IPO may be delayed until 2019, and other reports indicate the shares will be sold only on a local exchange. In April 2018, the Saudi finance minister raises the possibility of a 2019 market launch.

2020 or 2021?

In an October 2018 interview with Bloomberg, Prince Mohammed-now the crown prince and de facto ruler-insists the listing will go ahead in “late 2020, early 2021”. On April 1, 2019 Aramco opens its secretive accounts for the first time and reveals it made the world’s biggest corporate profit in 2018.

‘Very, very soon’

On August 29 the Wall Street Journal says Aramco is considering a two-stage stock market debut, first domestic and then international, with Tokyo as a possible location. But on September 14 drone strikes hit two Aramco oil facilities, causing catastrophic damage and temporarily knocking out half of the kingdom’s oil production. The attacks are claimed by Yemen’s Huthi rebels who are battling a Saudi-led coalition, but suspicion instead falls on their sponsors Iran. Aramco insists the attacks will not deter its IPO plans.

On October 14, Aramco chairman Yasir alRumayyan says the energy giant will announce the long-awaited stock market debut “very, very soon”.

But on October 17 the prospect of another delay is raised with the reason said to be the prospect of falling short of the $2 trillion valuation desired by Saudi rulers.

Green light

As global bankers and policy-makers converge on Riyadh for its annual investment conference, Saudi energy minister Prince Abdulaziz bin Salman says on October 30 that the timing of the IPO will be dictated by the crown prince. On November 1, sources in New York tell AFP that the young ruler will formally announce the listing in coming days.

On November 3, journalists are called to Aramco’s headquarters in eastern Dhahran for the news everyone’s been waiting for-but despite firing the starting pistol on the IPO, the company says its date and size will be decided later. — AFP