March 11 (Reuters) – British officials have been informed by their Saudi counterparts that oil giant Saudi Aramco’s <IPO-ARMO.SE> initial public offering is likely to be delayed until 2019, the Financial Times reported.

The Saudi government had targeted a market listing by the second half of 2018, but preparedness for the offering and also willingness for a simultaneous or sequential flotation on a foreign exchange had been questioned, the FT reported, citing sources.

London still had a good chance to secure the listing, which would value the company at $2 trillion, but a foreign flotation would likely happen only in 2019 at the earliest, according to the FT. http://on.ft.com/2Ilp9Ar

New York and London have been front-runners to host the company’s international flotation, alongside a Riyadh listing.

Saudi Energy Minister Khalid al-Falih said in an interview with CNN last week that he was concerned about the risks that Aramco would run into by choosing New York as the venue for its $100 billion market listing.

The state-run oil company is expected to sell about 5 percent of Aramco in what would likely be the world’s biggest IPO.

Saudi Arabian Oil Co, known as Saudi Aramco, was not immediately available for comment.

(Reporting by Sangameswaran S in Bengaluru; Editing by Peter Cooney)





Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Source link

NO COMMENTS

LEAVE A REPLY