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Saudi Arabia considering delaying Aramco IPO after drone attacks

Bloomberg/Simon Dawson

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The Kingdom’s energy officials and Saudi Aramco executives are said to be debating rescheduling the listing until after the company fully restores its production.

Tuesday 17, September 2019 BY MUZORIWA KUDAKWASHE

Saudi Arabia’s energy officials are considering delaying Saudi Aramco’s initial public offering (IPO), after attacks on the energy giant’s largest oil facilities affected more than half of the Kingdom’s output, according to Wall Street Journal.

The company is expected to move forward with presentations to analysts and meetings with bankers as planned, however, energy officials and the company’s executives are considering a rescheduling of the IPO until after the company fully restores its production to normal levels.

Saudi Aramco has been preparing to list one per cent shares of the state oil company on Tadawul before the end of this year and another one per cent in 2020, based on the indicated $2 trillion valuation that the company had hoped to achieve, a one per cent float would be worth $20 billion.

The listing plans were put on hold last year, however, the Kingdom recently revived them, putting a fresh spotlight on its operations.

The attack on Abqaiq oil-processing facility and Khurais cut off 5.7 million barrels a day in production and Saudi officials expected to restore about one-third of that this week and be able to get most of production back to normal in coming days, using stored oil and different facilities but the processing plant sustained significant damage and getting it back up online fully could take at least weeks.

 

TAGS : Saudi Aramco, IPO, Tadawul, Abaqaiq drone attack

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