Saudi Aramco chief Amin Nasser sets out roadmap for IPO in 2021

The head of Saudi Aramco, pictured here at Davos 2017, has laid out a roadmap leading to the sale of shares in the world’s biggest oil company in 2021. (WEF)
Updated 27 January 2019

Saudi Aramco chief Amin Nasser sets out roadmap for IPO in 2021

  • ‘The IPO is going to happen. There is no doubt the commitment is there,’ CEO tells Arab News
  • Aramco considering a major acquisition in the global gas industry

DAVOS: The head of Saudi Aramco has laid out a roadmap leading to the sale of shares in the world’s biggest oil company in 2021.
“It’s going to happen,” president and chief executive Amin Nasser told Arab News. “There is no doubt the commitment is there, and it was also further confirmed by Crown Prince Mohammed bin Salman and by the Minister of Energy Khalid Al-Falih.”
The initial public offering — potentially the biggest stock-market flotation in history — will require careful coordination over the next two years, he said.

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FULL ARAB NEWS INTERVIEW WITH AMIN NASSER HERE

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The first stage is to complete the acquisition of SABIC, the Kingdom’s industrial giant, to transform Aramco into a major player in the global petrochemicals industry.
“That will take almost until the end of 2019, or maybe a little bit more; we don’t know because you need approval from a lot of countries where SABIC has major operations,” Nasser said.
“After that you need a minimum of one year to … show what is the impact on our balance sheet — because the investors will want to see. Then you can go to the market.”
Aramco is also considering a major acquisition in the global gas industry, with potential targets in the US, Russia and Australia, Nasser revealed.
“The team is identifying opportunities and we’re at the stage of reviewing them in detail before we announce anything.”


Struggling WeWork mulls bailout deals with SoftBank, JP Morgan

Updated 14 October 2019

Struggling WeWork mulls bailout deals with SoftBank, JP Morgan

TOKYO: Under-pressure start-up WeWork is considering two huge bailout plans including a cash injection that could see Japanese investment titan SoftBank take control of the firm, according to reports.
The office-sharing giant had been on course for a massive initial public offering until last month when questions began to be asked over its governance and profit outlook.
The firm’s valuation plunged from $47 billion in January to less than $20 billion in September and the listing plans have been dropped, while co-founder Adam Neumann stepped down as chief executive.
With New York-based parent company We Co. not expected to push for the IPO this year, the cash-strapped firm is looking for a financial lifeline.
The Wall Street Journal, New York Times and Bloomberg News cited unnamed sources close to the talks as saying SoftBank — the US firm’s biggest shareholder — had drawn up a proposal that gives it full control of WeWork.
The move would dilute the voting power of Neumann, who remains as chairman of the company he started in 2010 and also currently maintains control a majority of voting shares.
They also reported that WeWork is looking at a deal with Wall Street giant JP Morgan to raise $5 billion in debt, with the Times saying directors of We would be meeting as soon as Monday afternoon to discuss that.
“WeWork has retained a major Wall Street financial institution to arrange financing,” the Journal reported a company spokesman as saying.
“Approximately 60 financing sources have signed confidentiality agreements and are meeting with the company’s management and its bankers over the course of this past week and this coming week.”
The New York-based startup that launched in 2010 has touted itself as revolutionizing commercial real estate by offering shared, flexible workspace arrangements, and has operations in 111 cities in 29 countries.
However, the company, which lost $1.9 billion last year, has faced skepticism over its ability to make money, especially if the global economy slows significantly.