Saudi Aramco says IPO timing depends on 'market conditions'

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The prospect of the world's most profitable firm falling short of a $2-trillion valuation is widely considered the reason the initial public offering has been delayed.

Aramco was expected to launch the first part of a two-stage listing in the coming week, but the energy giant decided to push the trading date back to December or January, a person familiar with the situation told Agence France-Presse last Thursday, October 17.an attack on Saudi oil facilities"The company continues to engage with the shareholders on IPO readiness activities," Aramco said in a statement to AFP.

The prospect of the world's most profitable firm falling short of a $2-trillion valuation sought by Saudi rulers is widely considered the reason the IPOA prior initiative to list Aramco was postponed last year due to disappointment over the valuation during a weak period for oil prices. With a $2-trillion valuation, the 5% sale could raise some $100 billion, in what would be the largest IPO ever. It would eclipse the 2014 listing of Alibaba which raised $25 billion.

"But Riyadh's apparent desire for a valuation of $2 trillion could still be difficult to justify," said Russ Mould, director at Bell Investment.

 

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