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The Wall Street Journal: Saudi officials are considering postponing the offering of Aramco shares


Saudi officials are considering postponing Aramco's IPO, following the attacks on some of its facilities last Saturday, the Wall Street Journal reported, citing sources.

Saudi officials are seeking to clarify the damage before amending the Aramco IPO, the newspaper said.

The newspaper said the attacks - which targeted Aramco facilities and adopted by the Houthi group - will affect the value of the company, noting that the continuation of the attacks may require additional devaluation.

The attacks have caused a sharp drop in world oil supplies. Saudi Arabia said the attacks had halted an estimated 5.7 million barrels of oil, or about 50 percent of Aramco's output.

Saudi Arabia plans to list 1% of Aramco on the Riyadh bourse before the end of this year, and similarly in 2020, Reuters quoted sources as saying before, followed by another step for an initial public offering of about 5% of the shares. The kingdom is seeking to raise about $ 100 billion from the offer.

The sale of a 5% stake in Aramco is central to Vision 2030, a plan to diversify the Saudi economy away from oil, but the initial public offering, which was initially expected to take place in 2017, has faced repeated delays.

The Saudi crown prince hopes to make Aramco worth $ 2 trillion, but analysts and bankers say $ 1.5 trillion is Aramco's worth.

Source: aljazeera

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news 2020/02/24    

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