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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- 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
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
