Saudi Arabia would have suspended the opening of the Aramco oil market



The operation, which is expected to be the biggest stock market debut in history, was canceled some time ago, industry sources say.


Saudi Arabia has canceled the local and international IPO of state-owned oil company Aramco, which was expected to be the largest such operation in history, according to four leading sources in the industry.

The group of financial advisers for the proposed IPO was dissolved, while Saudi Arabia shifted its focus to a proposal to acquire a "strategic interest" in the local petrochemicals manufacturer Saudi Basic Industries Corp, according to two sources.

"The decision to cancel the OPI has been made some time ago, but no one can make it known, so the communiqués will gradually go in that direction, first postpone and then cancel," said a Saudi source who was familiar with the OPI & # 39 ; s plans.

Aramco did not respond immediately to a request for comment and the court of Saudi Arabia did not immediately make statements.

The proposed IPO of a national company was a central part of the reform initiatives of crown prince Mohammed bin Salman, who want to restructure the economy of the kingdom and reduce its dependence on oil revenues.

The prince announced the plan to sell almost 5% of Aramco in 2016 through a local and international IPO, assuming that the sale would value the total amount of the company at US $ 2 billion or more.

However, several industry experts wondered whether such a high valuation was realistic, which hindered the process of preparation of the IPO for the advisers.

Fairs in financial centers such as London, New York and Hong Kong competed to organize the international tranche of the sale of the shares.


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