Last year, Saudi Aramco delayed a planned IPO after more than two years of preparations as worldwide investors balked at the $2-trillion US valuation Saudi Crown Prince Mohammed bin Salman had put on the company. So now the firm was hoping to reassure nervous investors by publishing positive results covering that tricky period. The company is taking every possible step to reach its target valuation. "Solid results after the attack will put them in a stronger position", said one of the sources. A source claim that it was only delayed and the project is not pulled out while the other one said that it may get delay by many weeks. But a Reuters' source said the IPO will likely be postponed to 2020. The banks are still struggling to meet the US$2 trillion valuation the company is seeking, according to the person. (Saudi Aramco) has delayed its long-anticipated initial public offering by several weeks until either December or January 2020, The Wall Street Journal reported October 17. "The company is ready and timing will depend on market conditions and be at a time of the shareholders' choosing".
Aramco has said it plans to float around five per cent of the state-owned company this year or next year in what could potentially be the world's biggest stock sale.
The mammoth initial public offering (IPO) forms the cornerstone of a reform programme envisaged by the kingdom's de facto ruler Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil. The recent attack on company's Khurais and Abqaiq plants results in the reduction of half the initial crude oil output.
Aramco halted plans for a blockbuster worldwide listing of around 5 per cent previous year amid debate over where to list overseas, but talks resumed this summer. A host of banks were given roles to arrange the listing.