• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 5 hours Canada Election Deadlock?
  • 59 mins Is Eating Meat Worse Than Burning Oil?
  • 9 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 18 hours Here's your favourite girl, Tom!
  • 9 hours Clampdown on Chinese capital flight is shutting down their commercial construction in US
  • 3 hours China & Coal: China's 2019 coal imports set to rise more than 10%: analysts
  • 24 hours Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 17 hours IMO 2020:
  • 8 hours Nigeria Demands $62B from Oil Majors
  • 7 hours Devaluing the Yuan
  • 1 day China's Blueprint For Global Power
  • 1 day Deepwater GOM Project Claims Industry First
  • 7 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
Iran Claims To Have Video Evidence Of Oil Tanker Attacks

Iran Claims To Have Video Evidence Of Oil Tanker Attacks

An Iranian National Security official…

Why Did Rick Perry Resign?

Why Did Rick Perry Resign?

Rick Perry has become the…

Will The Aramco IPO Spark A Crisis In Saudi Arabia?

Aramco office

Aramco will issue the prospectus for its initial public offering before this month’s end, the Wall Street Journal reported, citing people familiar with the preparations for the biggest IPO in history.

The Arabic version of the document that will promote the Saudi state energy giant among investors will come out on October 25, with the English version to follow two days later, on the 27th.

Next month, book-building will begin to test the waters for actual investor interest. Based on this, the company will either proceed with the listing—initially on the local Tadawul exchange—or postpone it.

In the meantime, Saudi expert Ellen R. Wald wrote for Forbes that the Aramco listing could create a headache for local regulators. There have been reports that a lot of regular Saudis will take on debt to buy shares in Aramco and, according to Wald, this might lead to a crisis of sorts, similar to the one that hit the Saudi economy in 2006, when lots of people borrowed to buy stocks listed on Tadawul, which caused their prices to balloon and then crash.

The preparations for the Aramco listing have been gathering speed lately. In September, the Saudi King Salman replaced Energy Minister Khalid al-Falih with his son Abdulaziz and also separated the Energy, Industry and Mining Ministry into two, with one dedicated singularly to energy. Falih also lost his position as chairman of Aramco, reportedly because he supported the idea of a later listing.

Also last month reports emerged that the government was pressuring wealthy Saudis into committing to buy shares in Aramco as a way of securing the so-called anchor investors in the company. There were also reports that Riyadh was considering doubling the stake to list to 10 percent.

Indeed, there was a reason to rush: prices were high and jumped higher after the attacks on a Saudi field and an oil processing facility. Now, they are on the slide again, with Brent below $60 and WTI close to $52 a barrel.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play