mobanmarketAbu Dhabi: Saudi energy giant Aramco is ready for a two-stage IPO but the timing is up to the government, its chief executive said on Tuesday, flagging a possible foreign listing as part of the offering.
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Aramco is “ready” for the giant initial public offering (IPO) but the timing is a “government decision”, Amin Nasser told reporters on the sidelines of the World Energy Congress.
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“One of the primary listings is going to be local but we are also ready for listing outside.”
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Nasser’s remark came after the Wall Street Journal reported last week that Aramco was considering a domestic debut and a subsequent international listing – possibly in Tokyo.
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Aramco has said it plans to float around 5 per cent of the state-owned company in 2020 or 2021 in what could potentially be the world’s biggest stock sale.
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The planned IPO forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil.
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It aims to raise up to $100 billion based on a $2 trillion valuation of the company, but investors have long debated whether Aramco is really worth that much.
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The prospect of falling short of the $2 trillion valuation desired by Saudi rulers is widely considered the reason the IPO – previously scheduled for 2018 – has been delayed.
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Earlier this month, Aramco said its first half net income for 2019 slipped nearly 12 percent to $46.9 billion on lower crude prices.
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It was the first time the company has published half-year financial results and comes after Aramco opened its secretive accounts for the first time in April, revealing itself to be the world’s most profitable company.
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