Saudi Arabia has called off both the domestic and international stock listing of state oil giant Aramco, billed as the biggest such deal in history, four senior industry sources said on Wednesday, Reuters reports.
The financial advisors working on the proposed listing have been disbanded, as Saudi Arabia shifts its attention to a proposed acquisition of a “strategic stake” in local petrochemicals maker Saudi Basic Industries Corp 2010.SE, two of the sources said.
“The decision to call off the IPO was taken some time ago, but no-one can disclose this, so statements are gradually going that way - first delay then calling off,” a Saudi source familiar with the IPO plans said.
Saudi Arabia’s energy minister denied that Aramco’s initial public offering would be called off, in a statement issued early on Thursday.
“The government remains committed to the initial public offering of Saudi Aramco, in accordance with the appropriate circumstances and appropriate time chosen by the government,” Energy Minister Khalid al-Falih said in the statement.
He said Riyadh had taken measures to prepare for the listing and that the timing would depend on factors including favorable market conditions, and a planned downstream acquisition in the next few months.
The proposed listing of the national champion was a central part of Crown Prince Mohammed bin Salman’s reform drive aimed at restructuring the kingdom’s economy and reducing its dependence on oil revenue.