Aramco IPO on track for 2018, reassures Saudi

Agencies

Saudi Arabia reassured global investors that it’s on track to sell shares in oil giant Aramco in 2018 as the who’s who of global finance and business gathered in Riyadh for a conference dubbed the “Davos in the Desert.”
The kingdom plans next year to sell a stake in Saudi Arabian Oil Co., as the world’s biggest oil exporter is known formally, Yasir Al-Rumayyan, the head of the country’s sovereign Public Investment Fund, said on Tuesday in the capital, dispelling reports that the share sale would be delayed. Yet, for the first time, Saudi officials made a clear distinction between the preparatory work, which they said will be completed on time, and the decision to go ahead with the IPO, which is in the hands of the government.
“Things are on track for 2018,” Aramco CEO Amin Nasser said. But when asked if that included both the domestic and international IPO, he hedged his response: “That decision will be decided by the shareholder, not by the company. The shareholder will make the decision regarding the venues. We have done an assessment, and you have to appreciate the size of data and due diligence done in each market; that’s available, and it’s reviewed now and the decision will come in due course.”

oil glut
Saudi Arabia is determined to reduce inventories further through an OPEC-led deal to cut crude output and raised the prospect of prolonged restraint once the pact ends to prevent a build up in excess supplies. Saudi Energy Minister Khalid al-Falih, speaking during an investment conference in Riyadh, said on Tuesday the focus remained on reducing the level of oil stocks in OECD industrialised countries to their five-year average.