$2 trillion may delay IPO of oil giant Aramco

Saudi Aramco’s initial public offering may be delayed until next year or later, as Saudi Arabia seeks a $2 trillion valuation. The postponement came days after Amin Nasser, chief executive of Aramco, the world’s largest oil producer, said the initial public offering “was going very well”. On the other hand, Saudi Energy Minister Khalid Al-Falih suggested in a press conference that the offer could be frozen until next year.

Saudi Arabia is seeking to list 5% of Aramco’s shares sometime this year, making it the largest ever IPO in terms of revenue. However, according to international newspapers, the desire for simultaneous floating in foreign currencies may not proceed as planned. But London’s chances of getting Aramco’s list appear to be pretty strong. The company also wants to list its shares in New York and Hong Kong may also be another option for the company. Aramco can also sell shares in China, in a private placement.

If Saudi Arabia chooses to list the company’s shares abroad, officials who spoke to the press said they expect local and foreign listings to occur at about the same time and possibly in the first half of next year. Aramco will be part of an effort to generate more funds to expand and diversify Saudi Arabia’s economy. However, Aramco’s chief executive remains optimistic about long-term oil demand.

“Oil and gas will continue to play a key role in a world in which all energy sources will be needed in the foreseeable future, “ Nasser told the energy conference at the Sirweek 2018 last week.

Saudi Arabia led OPEC’s efforts together with Russia to curb oil production. However, oil production in the United States is growing again. US crude fell 1.1 percent, to $61.36 a barrel on Monday.

Energy is traded through contracts where the price difference between the maximum and the minimum in the buy / sell measurement depends on the method chosen for trading. Power is traded in the futures market, in the same way CFDs are traded.


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