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Another twist in the much delayed Saudi Aramco IPO. The Financial Times and WSJ are out with a report that Aramco, i.e. The Kingdom of Saudi Arabia, is considering ditching the IPO internationally, listing domestically and selling shares privately. The FT cites five sources familiar with the matter, the WSJ added more detail later & Ellen R Wald @EnergzdEconomy with her inight.

saudi aramco

With the failure of oil to sustantially recover and Russia now overtaking Saudi Arabia as the leading exporter of crude to China the Kingdom maybe beginning to grasp reality.  Indeed they have stepped up talks with some of the world's largest sovereign wealth funds and institutional investors the sources told the newspaper.

A Saudi Aramco spokesperson told CNBC that "a range of options, for the public listing of Saudi Aramco, continue to be held under active review. No decision has been made and the IPO process remains on track."

UPDATE: Since The FT report Saudi Aramco denies that it is shelving the idea of an IPO after the Financial Times reported it has been in talks about private placements.

Given the China export issue the Chinese government is close to playing a key role in any new plan for offering shares, the FT report said. Well played China is the thought around the desk.

The report said despite any private allocations Saudi Aramco would still plan to list shares on the Tadawul exchange next year the FT said, citing sources. 

From THE WSJ : Saudi Arabia has received an offer from a Chinese investor interested in acquiring a stake in the oil company, and is considering the offer, according to one of the people familiar with the matter.

Another option the company is considering is to do the IPO in two stages, with a listing on Riyadh’s Tadawul exchange in 2018 and an international listing a year later, that person said.

The WSJ also reported on an upcoming investor conference hosted by Aramco that will give us more clues

Read the full Financial Times story here.

Read the full WSJ story here.

Follow Ellen Wald Here

Sources: Financial Times, CNBC, WSJ, Ellen Wald

From The TradersCommunity News Desk

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