• 4 minutes Your idea of oil/gas prices next ten years
  • 7 minutes WTI Heading for $60
  • 13 minutes Could EVs Become Cheaper than ICE Cars by 2023?
  • 1 day Pence says South China Sea Doesn't Belong To Any One Nation
  • 7 hours Is California becoming a National Security Risk to the U.S.?
  • 2 days Anyone holding Nvidia stock?
  • 21 hours Why does US never need to have an oil production cut?
  • 4 hours US continues imports of Russian gas which it insists Europe should stop buying
  • 2 days Germany Discusses Lifting Ban on Deporting Syrians
  • 2 days China Claims To Have Successfully Developed a Quantum Radar That Can Detect 'Invisible' Fighter Jets
  • 1 hour Pros and Cons of Coal
  • 2 days UK Power and loss of power stations
  • 8 hours Trump administration slaps sanctions on Saudis over Khashoggi's death
  • 2 days I Believe I Can Fly: Proposed U.S. Space Force Budget Could Be Less Than $5 Billion
  • 2 days OPEC Builds Case For Oil Supply Cut
  • 24 hours Commission: U.S. Could Lose Wars With Russia, China

Global Energy Advisory – 24th August 2018

Rig

Aramco’s initial public offering may never happen, after four industry sources told Reuters earlier this week that the company had disbanded its financial advisors on the listing. While Oil Minister Khalid al-Falih rejected the report, saying the Aramco listing was on track and a lot of the preparation work had been completed, the Reuters report is likely to deepen skepticism, since Falih also said that conditions for the listing had to be optimal, although he did not elaborate.

What was initially touted as the biggest IPO in the history of stock exchanges over the last year lost a lot of its spark as doubts began to emerge and then deepen that there will not be an international listing due to a number of challenges with financial transparency and the prospect of litigation in the United States following 9/11 legislation allowing U.S. citizens to sue Saudi ones.

Indeed, a while ago Aramco confirmed it would initially list on the Saudi exchange, Tadawul, and consider its international listing in the future. However, even a local listing was challenging, giving a disproportionate weight to oil stocks on the exchange and possibly pushing away investors in other Saudi industries, not to mention the sheer size of the Aramco float, which at 5% was estimated to be worth $200 billion.

The value of the stock has also been challenged more than once on the grounds that a lot of factors needed to align for this valuation to become real, with the top one being oil…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




Oilprice - The No. 1 Source for Oil & Energy News
-->