• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 27 mins The Political Debacle: Brexit delayed
  • 11 hours Oil-sands recovery by solvents has started on a trial basis; first loads now shipped.
  • 2 hours Tidal Power Closer to Commercialisation
  • 11 mins New Rebate For EVs in Canada
  • 16 mins No Mercy: EU Fines Google $1.7 billion For Abusing Online Ads Market
  • 6 hours US-backed coup in Venezuela not so smooth
  • 4 hours Solar to Become World's Largest Power Source by 2050
  • 5 hours Read: OPEC THREATENED TO KILL US SHALE
  • 3 hours Will Trump Cave Again
  • 15 hours Biomass, Ethanol No Longer Green
  • 14 hours Malaysia Oil & Gas Updates
  • 10 hours Oil stocks are heating up again! What's on your Watchlist?

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…




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