Riyadh – Mubasher: Saudi Arabia may postpone the initial public offering (IPO) of the Saudi Arabian Oil Co, known globally as Saudi Aramco until 2019, Bloomberg reported, citing informed sources as saying.
The Saudi government is still aiming to implement Aramco’s IPO in the second half of 2018, but time's narrow will not allow, the agency added.
“The delay in selecting a foreign exchange, mostly likely London or New York, has had a knock-on effect on other preparatory work,” Bloomberg stated.
Oil prices’ drop may impact Aramco’s valuation, which was previously estimated at $2 trillion, whereas some analysts gave lower valuations.
The largest oil company has hired Evercore Partners Inc, HSBC Bank Plc, Moelis, and Co, Morgan Stanley, and JPMorgan Chase & Co. as advisors of the IPO, while Michael Klein, Independent Wall Street consultant is the advisor for the Saudi oil ministry.
