Re: Saudi Aramco IPO
Posted: Mon 06 Aug 2018, 16:20:32
That isn't true. There was no mention of a 2018 target date for the IPO in their initial announcements. Even the statement by the CEO of ARAMCO in early 2018 doesn't set a late 2018 IPO da
From Financial Post Article in Oct 6, 2016
Saudi Arabia, under pressure from lower crude prices, wants to sell shares in Aramco in early 2018 as part of an effort to generate revenue and reform its economy. The government hopes to raise about $100 billion from the IPO of its flagship asset. The planned sale, which Deputy Crown Prince Mohammed bin Salman announced in April, could be the world’s largest share offering.
From Forbes on Feb 25th, 2017
Initially, the IPO was expected to take place in early 2018, but the expected date has since been pushed off to late 2018 or early 2019
The CEO of ARAMCO also said he doesn't plan on doing the IPO in NY, London or Hong Kong as you falsely claim. The CEO said they will list in KSA. Of course, disclosure requirements will be minimal if the IPO comes out only in a KSA bourse.
He did not say he doesn't plan on doing the IPO in NY, London or Hong Kong...he mentioned they will list on the Saudi bourse but it is almost certainly not large enough to offer out 5% of ARAMCO.
In January of this year in a Financial Post article:
Saudi Arabia has shortlisted New York, London and Hong Kong — singly or in a combination of two or even all three — for the international portion of the listing of national oil company Aramco, two sources with knowledge of the discussions said.
The initial public offering (IPO) will also include the Saudi stock exchange, Tadawul, and is still set for late 2018, the sources said.
The shortlist means Tokyo, Singapore and Toronto are no longer in the running for what is likely to be the world’s biggest IPO
And finally, the news story predates the Crown Prince influencing ARAMCO to sell bonds and buy the states shares of SABIC for ca. 50-60 billion, thereby providing the money the Crown Prince wants for infrastructure projects and obviating any need for ARAMCO to do an IPO to raise money for KSA infrastructure projects---.
Thus it makes sense when recent news reports in the WSJ and elsewhere (see my links and cogent discussion up the thread) say the IPO is stalled out and may not happen at all now.
as usual, your arguments are all over the place. The whole point is that your claim the IPO is being avoided because SA is worried about disclosure is completely stupid when you take into account that the issuance of bonds on the international market will demand the same level of disclosure as the IPO.