(MENAFN- Baystreet.ca) The initial public offering (IPO) of oil giant Saudi Aramco is on hold – for now.
The Saudi state oil producer has decided to postpone the launch of the world's largest IPO for at least a few weeks due to poor market conditions and global economic uncertainty, according to multiple media reports.
The delay also gives the Wall Street banks advising Saudi Aramco time to incorporate third-quarter results into their pre-IPO assessment valuations. Saudi officials want a $2-trillion U.S. valuation on the oil company, which would make it the biggest IPO in history.
Saudi Aramco had been planning to launch its share sale on October 20 with a month-long promotional road show around the world, ending with the IPO in late November. Now, a listing is unlikely before December or January.
Last year, Saudi Aramco delayed a planned IPO after more than two years of preparations as international investors balked at the $2-trillion U.S. valuation Saudi Crown Prince Mohammed bin Salman had put on the company.
This time around, Saudi Aramco chose an easier route, deciding to start with a local listing only in Riyadh and ditching plans for a share sale in London and New York. The Saudi royal family has also enlisted other wealthy families to support the IPO.
However, weak oil prices, a slowing world economy and last month's attack on the company's biggest processing plant have now pushed back the IPO's timing.
MENAFN1910201902120000ID1099148775
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.