Saudi Aramco reportedly delays what would be the biggest IPO in history

Reuters
  • Saudi Aramco delayed its scheduled mega-IPO, according to the Financial Times.
  • The world’s largest oil company was poised to go public as soon as November, first offering 1% or 2% of shares on Saudi Arabia’s domestic exchange before listing the rest of a 5% stake internationally. The offering was set to be the largest IPO on record.
  • The firm delayed its offering to give investors greater detail on how its quarterly earnings were affected by September’s drone strikes on Aramco infrastructure, the FT reported.
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Saudi Aramco delayed the scheduled launch of its massive IPO, the Financial Times reported Thursday.

The world’s largest oil company reportedly wanted to give investors additional details on how its quarterly earnings were affected by September’s drone attacks, according to the FT. Aramco is now eyeing a December or January date for its IPO, two sources familiar with the plans told The Wall Street Journal.

The resulting damage to Aramco infrastructure led the company to temporarily slash production. CEO Amin Nasser told CNBC last week the firm would return to “maximum sustained capacity” by the end of November.

Aramco officials planned to sell 1% to 2% of shares on Saudi Arabia’s domestic exchange as soon as November before listing the rest of a 5% stake internationally. A prospectus – the document used to market Aramco shares internationally – was slated for release on October 25.

Read more: Famed economist David Rosenberg explains how the Saudi oil fiasco’s impact on US consumers could hasten the next recession

Saudi Crown Prince Mohammed bin Salman previously called for the firm to be valued at $US2 trillion. If the state-owned oil company offered 5% of shares at a $US2 trillion valuation, the IPO could raise as much as $US100 billion, four times the largest IPO in history.

The company hired JPMorgan, Morgan Stanley and Saudi Arabia’s National Commercial Bank to advise in the offering, Reuters previously reported.


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