Economy

Saudi Aramco IPO Delayed Amid Deteriorating Conditions

Saudi Aramco IPO Delayed Amid Deteriorating Conditions”

As per some sources, it said that the company now wants to wait until it can provide all investors with the same clarity and it is the most quarterly earnings that they can get after the attacks on the Saudi infrastructure.

Saudi Aramco was declared the most profitable company in the world after it published its financial results for the first time, disclosing that it made $111 billion in profits back previous year. This might also well mean a delay until 2020. Saudi officials want a $2-trillion USA valuation on the oil company, which would make it the biggest IPO in history. Aramco Chief Executive Officer Amin Nasser said last month that the IPO would happen "very soon".

Addressing directly CEOs of Bank of America, Citigroup, Credit Suisse, Goldman Sachs, HSBC, JP Morgan and Morgan Stanley - all reportedly involved in the mammoth initial public offering (IPO) - working on the IPO would call into question the lenders' commitments to the environment and human rights, the joint letter argued. The Financial Times broke the story about the IPO postponement. It's not known when Saudi Aramco will release its third quarter results, however.

"They want to do all what they can to hit valuation target, solid results after the attack will give them a stronger position", one of the sources told Reuters.

Last year, Saudi Aramco delayed a planned IPO after more than two years of preparations as global investors balked at the $2-trillion USA valuation Saudi Crown Prince Mohammed bin Salman had put on the company. Some analysts contend damage to Abqaiq and Khurais was apparently more serious than admitted, hence the IPO delay.

SAUDI Aramco plans to push back its initial public offering, which had been expected to be launched next week, a person familiar with the situation said yesterday.

In the meantime, the company said IPO would be dependent on market conditions, even as it continues to engage with shareholders concerning the listing.



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