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.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in September 2020.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.