Saudi Arabia on Thursday (August 23rd) rejected reports that Aramco's planned initial public offering had been scrapped, saying the kingdom had stepped up preparations for the stock market debut of the state energy giant, AFP reported.
"The government remains committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum," energy minister Khalid al-Falih said in a statement.
The plan to float around 5% of Aramco -- expected to be the world's largest stock sale -- forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the economy off its reliance on oil.
But Aramco executives have repeatedly cited unfavourable market conditions to push back the IPO, earlier scheduled for this year, with many observers sceptical whether the listing will happen at all.
Experts say Aramco's inability to generate a $2 trillion valuation sought by the crown prince and legal concerns that the IPO will invite unprecedented scrutiny to the company have prompted indecision and delays.
Al-Falih, however, insisted that the kingdom had boosted preparations for the listing.
"The government has undertaken a number of major preparatory measures including issuing a new income tax law as it relates to hydrocarbons activities, reissuing a long-term exclusive concession, and appointing a new board of directors," al-Falih said.
He refused to specify a possible timing for the IPO, reiterating that it depended on factors such as "favourable market conditions and a downstream acquisition which the company will pursue in the next few months".
