Aramco listing plan halted, oil giant disbands advisors – sources

https://www.reuters.com/article/us-saudi-aramco-ipo-exclusive/exclusive-aramco-listing-plan-halted-oil-giant-disbands-advisors-sources-idUSKCN1L71TZ

by chollida1 • 8 years ago

135 15 8 years ago

reuters.com

whatok• 8 years ago

This was all but announced over the past few months. Like mentioned in article in the article, they're targeting SABIC which probably requires a big bond deal. Bloomberg says current market cap is 98bn USD so...

There are definitely some junior bankers who want to kill themselves over this.

captain_perl• 8 years ago

I think they were asking $2 Trillion, and deals with developing countries always involve a "no-layoffs clause", which is mostly nepotism. See Air India's "proposed sale" for an example.

Additionally, the recent royal family instability and waiting until solar and wind took off (ie. competition) didn't help.

It would be cheaper to just hire Xe and take over the country, which you would need to do anyway to enforce your ownership stake.

valuearb• 8 years ago

Only fools would have ever bought into the Aramco IPO. The vast majority of IPOs are sucker bets for investors, companies selling high to take advantage of their likely peak value.

But in Aramcos case you’d have actual self dealing despots controlling your investment, and eventually they’d make clear how junior their junior partners really were.

ttul• 8 years ago

I am not surprised by this news. No doubt the transparency that a listing would require was simply too much for the Kingdom.

JamesBarney• 8 years ago

I think of the biggest issues was they expected to get a far higher market cap then they got.

hyencomper• 8 years ago

It is rumored that the Saudis made the 100 billion they wanted from the Ritz-Carlton crackdown, so no more interest in the IPO.

justboxing2• 8 years ago

the Ritz-Carlton crackdown

What's this? Are you referring to the use of these hotels as luxury prisons during the purge?

williamscales• 8 years ago

Numerous princes were detained at the Ritz-Carlton hotel and weren't allowed to leave until they admitted to corruption and surrendered significant amounts of cash. A few fought this but most folks just handed over the money.

https://www.bloomberg.com/news/articles/2018-01-25/saudi-ara...

freewilly1040• 8 years ago

100 billion doesn’t sound like much if their thesis is that they won’t be able to rely on oil profits in the medium term future.

jonbaer• 8 years ago

They are denying it ... https://www.cnbc.com/2018/08/23/saudi-aramco-ipo-riyadh-deni...

pseingatl• 8 years ago

"The Government remains committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum."

Not much of a denial.

Aramco listing plan halted, oil giant disbands advisors – sources

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