Saudi Arabia cancelling massive Aramco oil IPO: report

Saudi Arabia cancelling massive Aramco oil IPO: report
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Saudi Arabia has cancelled its plan to list the domestic and international stock of state oil megalith Aramco.

Four senior industry sources told Reuters on Wednesday that Saudi Arabia had tossed the idea as the kingdom looks to turn its focus toward the acquisition of a “strategic stake” in Saudi Basic Industries Corp 2010.SE, a local petrochemicals producer.

“The decision to call off the IPO was taken some time ago, but no-one can disclose this, so statements are gradually going that way — first delay then calling off,” a Saudi source familiar with the IPO plans told Reuters.

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Saudi Aramco did not immediately respond to Reuters's request for comment.

Listing the Saudi Aramco IPO was a vital part of Crown Prince Mohammed bin Salman’s push to restructure the national oil company for long-term sustainability, lessening its dependence on oil revenue.

President TrumpDonald John TrumpSarah Huckabee Sanders becomes Fox News contributor The US-Iranian scuffle over a ship is a sideshow to events in the Gulf South Korea: US, North Korea to resume nuclear talks 'soon' MORE had vied alongside other financial centers to host the international share sales in November of last year, The New York Times reported.

President Trump tweeted out a request to the Saudis that they choose the New York Stock Exchange.

One official told Reuters that the advisors had been put on standby.

“The IPO has not been officially called off, but the likelihood of it not happening at all is greater than it being on,” another advisor told the outlet.