Saudi Aramco delays IPO

Saudi Aramco to delay initial public offering: Source

There are indications that 2% of Saudi Aramco will be sold during the IPO, with as much as $40 billion raised.

However, after a September 14 attack on its Abqaiq and Khurais plants temporarily knocked out half its crude output, the world's top exporter wants to reassure investors by first presenting results covering the period, the two sources said, speaking on condition of anonymity as the information is not public.

Valuations for the company's value has been debated amongst experts, as many believe Riyadh is over-valuing its worth.

"They want to do all what they can to hit valuation target, solid results after the attack will give them a stronger position", one of the sources told Reuters. But a Reuters' source said the IPO will likely be postponed to 2020. (Saudi Aramco) has delayed its long-anticipated initial public offering by several weeks until either December or January 2020, The Wall Street Journal reported October 17.

There was still no new date for the listing, but the Financial Times had reported the day before that the flotation would be delayed for weeks.

"This would make us even be firm when it comes to taking the company public, so I think anytime in the coming 12 months we'll be ready as per the market opportunity". The company is expected to be valued at between US$1.5 (RM6.3 trillion) and US$2 trillion, making it the biggest ever.

The IPO forms the cornerstone of a reform programme envisaged by the kingdom's de facto ruler Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil. The recent attack on company's Khurais and Abqaiq plants results in the reduction of half the initial crude oil output.

The company is planning to float a 1% to 2% stake in the Tadawul market before the worldwide listing.

"The official line was that the Q3 results were very good, so they want to update the analysts and market the IPO after the Q3 numbers", the second source said.

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