The
world's biggest oil company Saudi Aramco's initial public offering (IPO) will
only take place in Saudi Arabia's stock exchange next year, Tedawul, while any
listing in foreign markets may not occur, according to a report by the Wall
Street Journal on Monday.
Saudi
officials cited escalating legal risks including the governance to structure
and financial disclosures against Aramco's offering in foreign exchanges.
"Crown
Prince Mohammed bin Salman ... has become resigned to the idea that the legal
risks of a U.S. listing could be insurmountable," The Wall Street Journal
reported based on Saudi officials and people close to the process.
Bin
Salman, who is in the U.S. this week to meet President Donald Trump and
American businesses, is not expected to make any announcements about the IPO,
according to Saudi officials.
Initially,
some foreign stock markets including New York, London, Hong Kong and Tokyo were
considered for listing.
However,
in contrast to the Wall Street Journal report, CNBC reported Monday that
Aramco's IPO could take place in Tedawul as soon as the second half of this
year, and any international listing would come later, if at all.
The
news organization also said since oil prices recovered and are now higher,
compared to two to three years ago, the need for a large IPO is not needed as
much.
Saudi
Arabia aims to earn $100 billion by offering 5 percent of Aramco to the public,
which would put the market capitalization of the company at $2 trillion,
according to Saudi Crown Prince Mohammed bin Salman's Vision 2030 plan.
While
Saudi Arabia does not publicly reveal its remaining crude oil reserves,
Aramco's closeness to the Riyadh government has also raised concerns for
investors, experts warn.
(Anadolu Agency)