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Saudi Aramko delays planned launch of long-awaited IPO



Saudi Aramko has delayed the launch of its long-awaited initial public offering, which was due to happen on Sunday, said three people familiar with the matter, putting the planned November flotation at risk.

One of those people said the company wants to wait until it can provide investors with clarity on its recent quarterly profits after last month's attacks on Saudi infrastructure, which halved production by half.

The list, which is central to the ambitious plans for economic reform of Crown Prince Mohammed bin Salman, has been delayed. and doubts as to whether he could achieve the $ 2k desired by the heir to the kingdom.

The government was expected to give up an internal list for Saudi Aramko this week. A board meeting was to follow before the company announced its formal intention to sail on October 20 to Dhahran, the company's headquarters.

The person said that the results would show that Saudi Aramko ̵

1; which is the most profitable company in the world – did not suffer a significant financial blow, adding that no deadline was set for the announcement.

A second person informed of the matter said the message was "delayed but not retrieved" while a third person said it had been delayed by "weeks".

Saudi Aramko is expected to release its next IPO prospectus a week before listing up to 3 percent of the company as early as November.

Despite local bankers expressing enthusiasm among Saudi Arabian retail investors for registration, it is unclear whether Prince Mohammed will be able to secure the long-sought $ 2 tonne valuation against the backdrop of doubts from potential foreign investors.

There are widespread concerns about perceived state intervention in Saudi Aramco's corporate strategy, along with broader concerns about the Kingdom's ability to protect Saudi energy assets.

Large trading families – many of whom were affected by the crackdown on corruption in 2017 – are also pressured to invest to ensure IPO success.

During world investors' meetings with fund managers in Asia and the United States in recent weeks, Saudi Aramko received a swift response to its proposal, bankers briefing on interactions.

One banker said Saudi Aramko had sought $ 1 billion from anchor institutions to invest in an anchor for a deal that would float from 1 to 2 percent of the company at an estimated $ 1.5 million to $ 2 million.

"Institutions are not interested in valuations higher than $ 1.2 tonnes," says the banker.

Sovereign wealth funds in the Middle East have also been used for future start-up. While some are concerned about the valuation, they also acknowledge that political imperatives in support of the kingdom can cosmopolize any skeptical view of the company's investment case. "This call to view Aramco came from higher windows," said another financier, informed of the discussions.

Saudi banks are also expected to lend to Saudi investors in order to finance share purchases.

In recent weeks, Riyadh has stepped up efforts to support the company's higher valuation. Riyadh has announced an annual dividend of $ 75 billion, changed government royalties and reduced long-term investment plans.

Saudi Aramko did not immediately respond to a request for comment.


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