- Aramco says report of possible postponement is ‘speculative’
- Offering is centerpiece to kingdom’s economic reform program
Saudi Arabia is considering delaying the international portion of the giant initial public offering of its state oil company until at least 2019, according to people familiar with the situation, who said a domestic share sale in Riyadh could still happen next year.
A two-stage Saudi Aramco IPO is one of several options being considered, the people said, asking not to be identified because discussion are private. Another plan would include listing in Riyadh next year and privately selling a stake in Aramco to one or several cornerstone investors, one of the people said.
Aramco said in a Twitter message on Saturday that all listing venues were under review for the IPO, expected to be the largest in history, and reports that a local listing in 2018 could be combined with a stake sale to a Chinese investor were “entirely speculative.”
The IPO is the centerpiece of a broad-ranging economic reform program proposed by Crown Prince Mohammed bin Salman, the dominant political force in the kingdom. Any delay would be a setback to his plans as well as the plethora of international investment banks and international exchanges eyeing millions in fees and commissions.
Contingency Plans
Saudi Arabia has been making contingency plans for a possible delay of the IPO,…