Saudi Arabia‘s state-owned oil behemoth is increasingly looking to just float locally, as plans to list on an international exchange hang in the balance, Reuters reported, citing sources close to the matter.
Saudi Aramco had planned to begin trading on the country’s domestic stock market — the Tadawul — and one or more foreign exchanges in the second half of 2018. London, New York and Hong Kong are among the foreign bourses currently competing for the share sale.
However, a Reuters report on Tuesday morning suggested Riyadh is now banking on being awarded emerging market status by MSCI in June, according to its sources. This is expected to help Aramco attract Western funds in addition to flagship investors from China, Japan and South Korea. Thus this would potentially reduce the need for an intentional listing.
“I would guess it is about evens that there will be no international IPO,” said a high-level source familiar with the preparations, according to Reuters. The source added that the preparations were proving to be a disappointment. CNBC has not been able to independently verify these sources.
Saudi Aramco was not immediately available for comment when contacted by CNBC.
Meanwhile on Sunday, another report said that Aramco’s listing would be pushed back to 2019. This would mark a setback for the oil giant as the long-awaited IPO (initial public offering) was set to take place in the latter half of this year.
The Financial Times, citing British officials who had been briefed during a state visit, reported that Aramco’s IPO — widely seen as the cornerstone project of the kingdom’s efforts to reform its economy — is struggling to arrive at the $2 trillion valuation sought by Saudi’s crown prince, Mohammed bin Salman.
