Daily Telegraph: Aramco's IPO is doomed to failure and its overall assessment is out of reach

Britain's Daily Telegraph says Saudi Aramco's IPO is doomed to failure.

Andy Critchlow writes that the $ 2 trillion that Saudi Arabia expects as an assessment of the company's total shares seems out of reach.

He adds that Aramco is seeking to put a percentage of its shares in the local market initially, but its efforts suffered a major blow weeks ago, after its facilities were bombed mid-last month, which stopped the flow of about six million barrels per day of production, or equivalent to 6% of production Daily at the global level.

Saudi Arabia has avoided a sharp rise in global fuel prices following Aramco's attack, due to its stockpile and rapid response to damage repairs.

negative effect
But Aramco, whose owners want to make sure their assets are secured before buying when the shares are put on the market, has been badly affected.

The writer believes that Aramco is suffering a big dilemma, although it announced two months ago its expected half-year profits estimated at $ 50 billion, in an attempt to reassure those who want to buy its shares.

Insiders told Reuters that Aramco's initial public offering had been delayed so it could reassure investors by presenting its post-attack results.

Aramco has delayed the planned launch of its IPO in the hope that its third-quarter results will boost investor confidence in the oil giant.

Initial Offering
Aramco was expected to announce next week plans to offer a 1% to 2% stake in the Saudi bourse, or one of the largest public offerings of up to $ 20bn.

However, the two sources, who spoke on condition of anonymity, said that after the attacks on Aramco that halted half of its crude production, the company wants to reassure investors by presenting its post-attack results.

While one exporter has confirmed that no new listing date has been set, the writer adds that the exporters do not know the likely date for the release of Aramco's third-quarter results.

The paper quotes informed sources as saying that it is unlikely to be launched this year in light of the attacks.

Evaluation and questioning
The prospect of selling Aramco as part of the company has made Wall Street warmer than ever since Saudi Crown Prince Mohammed bin Salman first announced it three years ago.

However, Mohammed bin Salman's desire to value the company at $ 2 trillion has always been questioned by financial and industry experts.

Aramco halted plans for a massive international listing of about 5% of its shares last year, amid controversy over the location of the listing, but talks resumed later.