REPORT: Saudi Arabia To Cancel Aramco IPO

The initial public offering of the gigantic oil company Saudi Aramco would have been the largest in history.

Reuters is reporting that Saudi Arabia is calling off their plan to list shares of Saudi Aramco, in what would have been the largest initial public offering of all time.

As noted by CNBC, “The initial public offering was poised to be the largest ever and was at the center of Crown Prince Mohammed bin Salman’s ambitious plan to overhaul the Saudi economy. The Saudis had hoped to attract a $2 trillion valuation for Aramco, the world’s largest oil company, though some outside analysts have pegged its value at half that level.”

Stock markets around the world had competed to host the IPO, with New York & London being seen as among the favourites. The Toronto Stock Exchange had also thrown their hat into the ring, though most saw it as a long-shot bid at best.

Now, there will be questions about the broader impact this will have on Saudi Arabia’s economic diversification plan. With their economy highly reliant on oil, Saudi Arabia has been seeking to develop other industries, and profits from the IPO would have been part of facilitating that. Even before the reported IPO cancellation, the reform plan has faced growing doubts as Saudi Arabia’s war in Yemen, crackdown on dissidents, and confrontations with other nations escalate.

Spencer Fernando

Photo – YouTube

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Andrew
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Andrew

What could have made them change their mind?
Did they have problems getting to the $2 trillion valuation?
Is it possible the oil they’ve “booked” isn’t all there?
Very interesting.

Dave
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Dave

Tell the Saudis to GFY …
Oil can be bought from other countries, like Canada
This might be Karma that has come back & kicked them in their ass, balls for their rude, ignorant, self-centred attitude to other countries.

Vicky
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Vicky

”…and confrontations with other nations escalate.”
What other nations?
That said, Saudis have only so many years (let’s say 18 at the most) of probable oil reserves. That’s why they’re branching out into LNG and other fields such as technology as more.
With USA Iran sanctions on oil, I would say it’s a good move.

Catanddog
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Catanddog

Spencer! Why? What does this mean?