Saudi Aramco plans IPO for 2020/2021

Saudi Aramco

The world’s largest oil company revenue, Saudi Aramco said it will execute its initial public offering, IPO between 2020/2021.

Our earlier reports on the IPO estimated that the world’s largest oil producer planned to list up to 5% of the national company, a move that will mark Saudi’s push away from solely relying on its oil revenue as a major source.

The IPO which has been highly anticipated by various investment banks has now been confirmed by Saudi Arabia’s energy minister.

Saudi Arabia’s energy minister Khalid al-Falih, who also heads Aramco said that:

“The IPO process was never fully suspended,” al-Falih said.

“We have always been clear that the IPO will happen in the 2020-2021 timeframe. We have never stopped talking about the IPO,” he said.

However, he hinted that the IPO was a delay for two major reasons. First is the Aramco’s $69.1 billion acquisition of a 70 percent stake in petrochemicals firm Saudi Basic Industries (SABIC) as well as the recent $12 billion bonds sale.

With the clearing of these obstacles, al-Falih said:

“Now that all of these issues have been cleared, we are ready to start planning for the IPO.”

People with the knowledge of the matter claimed that major investment banks including HSBC, JPMorgan as well as Morgan Stanley are part of major international investment banks looking to re-pitch for the IPO.

Last year, Aramco announced that it hired Moelis and Evercore to advise on the IPO.