Saudi Aramco to IPO in 2018

05 de outubro de 2017

São Paulo – The Saudi Arabian state-owned oil company Saudi Aramco will make its initial public offering (IPO) in the second half of next year, the Saudi minister of Energy, Industry and Mineral Resources Khalid Al-Falih said this Thursday (5) in Russia. Falih also chairs Saudi Aramco.

Saudi authorities are currently in Russia working on a number of agreements, as well as attending a forum on the energy industry in Moscow, Gulf Business said. “Work is ongoing to list Saudi Aramco in 2018," CEO Amin Nasser said as well.

According to minister Falih, Saudi Aramco’s going will be used as a “catalyst” for opening up the country’s economy. Some 5% of Aramco will be offered as part of the Saudi government’s Vision 2030 plan, a wide-reaching reform plan towards economic diversification.

Some of the cash from the IPO will go into other sectors and industries. Shares will be floated both in the Saudi stock exchange and in a yet-to-be-chosen international one. Top bidders include the New York, Londong and Hong Kong exchanges, Gulf Business reported.

Saudi king Salman bin Abdulaziz Al Saud is also on a visit to Russia. Several investment agreements will be entered into and final steps will be taken by Saudi Aramco and Russia’s Litasco to create a joint US$ 1 billion fund to invest in energy projects. The two oil companies have entered into a memorandum of understanding.

The International Monetary Fund (IMF) issued projections this Thursday regarding the Saudi economy. It said USD 90 billion could be added to the country’s budget in 2020 through new taxes, a subsidy reform plan and fuel price hikes. Saudi saw its economy shrink for two straight quarters as it struggled with the oil price slump.

The IMF expects Saudi GDP to be up 0.1% this year and 1.1% in 2018, with non-oil sectors are seen growing respectively by 1.7% and 1.3%.

*Translated by Gabriel Pomerancblum