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Saudi Aramco to Restart IPO Preparations
Traders Magazine Online News, July 15, 2019
After much ado and then a delay, the much-awaited Saudi Aramco initial public offering is said to be back on choice.
As first reported by Bloomberg BNN, Saudi Arabia is restarting preparations for a potential initial public offering of oil giant Aramco, months after putting the planned listing on hold, people familiar with the matter said.
Aramco, it was reported, recently held talks with a select group of investment banks to discuss potential roles on the offering, according to the people. They added detailed work on the IPO may pick up speed later this year or early next year.
Aside from Nasdaq, NYSE and LSE, all of who where looking to grab a portion of the listing, TMX Group CEO Lou Eccleston said his exchange network was in discussions with the Saudi Arabian oil giant to get a portion of the global listing component of the looming IPO. Any listing, he added, would be on the Toronto Stock Exchange.
Part of the delay in listing was the fact the Kingdom is looking to get a $2 trillion valuation. Lower oil prices have been blamed for the delay as well as interest in socially and environmentally responsible investing, which excludes fossil fuels.
Saudi Prince Mohammed has insisted that the IPO will still take place in 2020 or 2021.
The IPO was to be run by Evercore Inc., Moelis & Co., HSBC Holdings Plc, JPMorgan Chase & Co. and Morgan Stanley. No updated list has been announced.
Aramco originally let on that it was going public back in 2016 as the cornerstone of the Vision 2030 plan to modernize the Saudi economy. Traders Magazine reported the listing would be completed in 2018 as multiple Saudi officials went public with statements indicating a sale was coming.
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