Saudi Aramco IPO likely delayed after oil attacks
The state-owned oil company is unlikely to list this year after drone strikes on its facilities, according to a report by Reuters.
Saudi Aramco is not likely to go ahead with its planned IPO this year following oil attacks on its facilities earlier this month, according to a report by Reuters.
In the wake of the attacks, which saw Aramco’s crude output cut in half, its chairman Yassir al-Rumayyan said that the company would still be able to list within a year.
Saudi officials have given a longer timeframe for the IPO, stating in the past that the listing could take place in 2020 or 2021.
Despite the major setback, the Aramco IPO remains crucial to Saudi Arabia’s economic reform agenda, with it capable of raising billions to fund projects to help the country diversify and reduce its reliance on oil.
Aramco attacks spook investors
News of the attacks shocked investors, highlighting how vulnerable the state-owned oil producer is to attacks on key assets.
Saudi energy minister Prince Abdulaziz bin Salman and Aramco CEO Amin Nasser hope to fully restore oil output by the end of September.
But despite Saudi officials’ eagerness to carry out emergency repairs it is likely to take many months before the Aramco resumes business as usual.
Saudi Arabia bullying wealthy families to support Aramco IPO
Saudi Arabia has pressured wealthy local families to become cornerstone investors in the Aramco IPO to help it achieve its $2 trillion valuation, according to a report by the Financial Times last week.
‘Four of the sources said the aim was to ‘strong-arm,’ ‘coerce’ or ‘bully’ some of the wealthiest families in the kingdom to become cornerstone investors in what has been billed as the world’s biggest ever IPO,’ the FT article said.
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