Saudi Aramco’s initial public offering may be pushed back.
Bloomberg’s Javier Blas reports that Saudi Arabia is “preparing contingency plans” for the possible delay of its state-oil behemoth’s IPO by a few months, into 2019.
In a statement, Saudi Aramco said the IPO “remains on track.”
Saudi Aramco CEO Amin Nasser said earlier this year that the IPO was likely to happen in the second half of 2018.
The state-oil behemoth’s IPO, opening up a 5% state in the company, is a priority for the kingdom’s leadership as it’s the centerpiece of the Saudis’ diversification efforts. The kingdom wants to raise cash to finance investments that can help curtail its “addiction” to oil.
Saudi Crown Prince Mohammed bin Salman has suggested Aramco may be valued close to $2 trillion, though investors have questioned whether the company will actually be valued at that price.
Brent crude oil, the international benchmark, was up by 0.6% at $55.50 a barrel at 8:39 a.m. ET.
Check out the full story on Bloomberg.
