Saudi energy minister says Aramco IPO could still happen in 2018

Saudi Arabian Energy Minister Khalid Al-Falih. (Reuters)
Updated 04 April 2018
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Saudi energy minister says Aramco IPO could still happen in 2018

WASHINGTON: Saudi Arabia may still move forward with an initial public offering (IPO) for state oil company Saudi Aramco on an international exchange such as London or New York in the second half of 2018, despite previously raising doubts it could be delayed to next year, Saudi Energy Minister Khalid Al-Falih said on Thursday.
Falih told Reuters in an interview in Washington the oil giant could be floated either domestically or internationally late this year. New York is still in the running for the IPO but Saudi officials still need to weigh the risk of potential “frivolous lawsuits” in its final decision.
“We have prepared all documentation to be ready to do both domestic and international listings,” Falih said. “We have not closed the door on 2018.” Saudi Arabia is planning to list up to 5 percent of Saudi Aramco in an initial public offering that could value it at up to $2 trillion and make it the world’s biggest oil company by market capitalization.
Falih said officials have prepared documentation to be ready to do both a domestic and an international listing.
Despite comments he made earlier this month that Aramco was too important to risk listing in the United States because of litigation concerns, such as existing lawsuits against rival oil companies for their role in climate change, he said New York is still in the running for the IPO.
“We have concerns obviously Aramco is too big and too valuable and too important and we could be potentially at risk from some frivolous lawsuits and litigation that we have to consider in our final decision,” he said.
Legal challenges could arise from a US law that would allow US victims of militant attacks to sue foreign governments for compensation.


Potential SABIC deal would affect Saudi Aramco IPO time frame, says CEO Nasser

Updated 20 July 2018
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Potential SABIC deal would affect Saudi Aramco IPO time frame, says CEO Nasser

JEDDAH: A potential deal to buy a stake in petrochemical maker SABIC would affect the time frame of Saudi Aramco's initial public offering (IPO), the oil firm's president and CEO Amin H. Nasser said Friday. 

The IPO of around 5 percent of Aramco, which was initially to take place this year but is now more likely to happen later, would be the world's biggest listing, raising up to $100 billion.

Nasser said that buying a stake in a chemical company like SABIC would positively affect Aramco's revenue, Al Arabiya reported.

“We are still in the very early stages of the discussion to buy a stake in SABIC,” the Aramco CEO said.

“Aramco is ready for the initial offer and the timing remains subject to the state's decision.”

Saudi Aramco said on Thursday it is looking at the possibility of buying a stake in SABIC, a move that could boost the state oil giant’s market valuation ahead of the planned IPO.
Aramco said in a statement that it was in “very early-stage discussions” with the Kingdom’s Public Investment Fund (PIF) to acquire the stake in SABIC via a private transaction. It has no plans to acquire any publicly held shares, it said.
In a separate statement, PIF also said talks about a sale were in early stages. “There is a possibility that no agreement will be reached in relation to this potential transaction,” it said.