New York (AFP)
Saudi Crown Prince Mohammed bin Salman is expected to announce on Sunday his green light for an IPO of the public oil giant Aramco, told AFP Friday a source familiar with the matter.
This transaction, which is the cornerstone of a reform program of the Crown Prince nicknamed "MBS", should value the company to between $ 1,500 and 1,700 billion, the largest capitalization in the world, added this source under cover of 'anonymity.
If this figure is confirmed, it would mean that MBS has finally released the ballast after claiming since 2016 a capitalization of 2,000 billion.
In 2018, the strong man of the Kingdom had decided to postpone the IPO because the capitalization calculated by the bankers, after meetings with potential investors, was below this threshold.
This was also the case recently when Aramco, which was to launch the first part of its two-step IPO in October, decided to postpone the date to December or January.
On Sunday, the Crown Prince is expected to announce that Aramco will go public this year, the source said. The timing of this operation and the modalities should be revealed on this occasion, said the source.
The calendar provides for a two-step introduction: first on the Saudi local stock exchange, the Tadawul, in December and in 2020 on an international financial center still unknown.
Aramco is expected to sell a total of 5% of its capital, including 2% during its financial baptism on the Tadawul, said earlier this month sources to AFP.
Aramco executives met with investors in London and New York last week, the source said, adding that there is a reluctance on the part of foreign investors to question transparency, governance and transparency. group valuation.
They are wealthy Saudi families, under pressure, who will bring the funds during this operation on the local market, reports the agency Bloomberg News, citing unnamed sources.
Local banks would also have been encouraged to lend money to small investors.
© 2019 AFP