Saudi Arabia's Crown Prince Mohammed bin Salman insists on valuing the oil company Aramco at $ 2 trillion, although sources close to the company say the target should be reduced to about $ 1.5 trillion, industry and banking sources told Reuters.
Aramco is resuming talks with banks on an initial public offering, with a source close to the company saying its board will meet soon and a discussion on the value of Aramco is likely.
Informed sources said the crown prince was still holding on to Aramco's $ 2 trillion worth in early 2016 when he first proposed a stock sale to diversify the kingdom's economy, reducing its dependence on oil.
"If the market does not properly assess Aramco, they are not in a hurry to go to an IPO," one source said. "They can always postpone."
"They have the right tools for maneuver and they are not in a weak position to implement Aramco's IPO unless there is value to achieve the goals of the vision and the national interest," he said.
About four months ago, Aramco launched its first $ 12 billion international bond. Reuters quoted banking and investment sources at the time as saying the price had been inflated under the Hamas-backed issue.