Riyadh – Mubasher: Talks of Saudi Aramco’s planned initial public offering (IPO) are underway, as the offering is still likely to be launched in the second half of 2018, CEO Amin Nasser told Bloomberg television on Tuesday.
"I think there is a lot demand for the listing of Aramco, this is a great company," Nasser indicated, noting that Saudi authorities will determine the final listing date for the IPO.
The Kingdom is still in talks over which bourse Aramco will list its shares, Nasser told Bloomberg, indicating that among the contenders are the Hong Kong bourse, the London Stock Exchange (LSE), and the New York Stock Exchange (NYSE).
By selling 5% of Saudi Aramco, the IPO may see the Saudi government collect around $100 billion, while the oil giant’s valuation is believed to surpass $2 trillion.
Nasser described Aramco’s listing as “a very complex process,” adding that “Aramco’s size and complexities is something that requires time."
Earlier in March, Saudi officials stated that the IPO may be postponed until 2019 due to the economic reforms implemented by Crown Prince Mohammed bin Salman.
The CEO further unveiled plans to focus Aramco’s investments on refining and petrochemicals, noting that he would like to bolster the "downstream" side of the business instead of raising the firm’s oil production capacity.
Responding to a question on how the Saudi oil giant would look like in 2030, Nasser said "more integrated, more of our barrels will go into petrochemicals, rather than refineries. Shifting more downstream, adding more value into the barrel through downstream."
Saudi Aramco currently produces 12 million barrels per day.
