Wednesday, 22 August 2018

Saudi Arabia has called off state oil giant Aramco float, report suggests

Saudi Arabia is reported to have cancelled its plans to sell shares in state oil giant Aramco, which had been billed as the largest flotation ever.

The group of financial advisers working on a plan to sell 5% of the company domestically and internationally has been disbanded, Reuters reports.

The wire service quoted a source suggesting the decision was taken some time ago but is not being announced.

Neither Saudi Aramco nor the Saudi Royal Court has commented on the story.

Mohammed bin Salman, Saudi Arabia's Crown Prince, first proposed the share sale early in 2016 as part of his economic reform agenda, to bring western regulation and scrutiny to the company, as well as raising cash to reduce the country's large budget deficit.
At the time he predicted the sale would value Aramco at around $2 trillion (£1.55 tn). The plan was to float shares on both the local stock market in Riyadh, and one of the world's leading international financial centres.

BBC     News.

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