Aramco to Give Green Light for World’s Biggest IPO Next Week

This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXMPED6Q1IR_M.jpg
© Reuters. Aramco to Give Green Light for World’s Biggest IPO Next Week© Reuters. Aramco to Give Green Light for World’s Biggest IPO Next Week

(Bloomberg) — Saudi Aramco’s board is expected to give final approvals to proceed with its mammoth share sale next week, according to people familiar with the matter.

The board is planning to meet with its advisers on the initial public offering around Oct. 17, the people said, asking not to be identified because the matter isn’t public. The oil giant will gauge market conditions and assess feedback from a roadshow for potential cornerstone investors that ends this week before giving the final go ahead, the people said.

Aramco is speeding up preparations for the IPO with an aim of listing on the Saudi bourse as soon as November, Bloomberg News has reported. People involved in the deal say about 2% of Aramco may be sold, which could raise $40 billion. The firm is targeting a valuation of at least $2 trillion — more than double that of Apple Inc (NASDAQ:). The sale is key to Crown Prince Mohammed bin Salman’s strategy to fund the diversification of the OPEC nation’s economy.

  • Note: Dates subject to change and according to people familiar with the matter

Investment banks’ research teams are in the midst of preparing pre-IPO reports on Aramco, according to an internal schedule seen by Bloomberg. Analysts had barely three weeks to get them done, compared with six-to-eight weeks they normally get for some of the biggest global listings.

Each bank’s team needed to finish a first draft of their analysis by Oct. 9, with second drafts due Oct. 15. The reports need to be finalized and printed by Oct. 18, so they can be ready to be distributed to fund managers once Aramco announces its intention to float on Oct. 20, the schedule shows.

While Aramco is likely to move ahead with the listing, no final decision has been made and the Saudis could still decide to delay or cancel the IPO, the people said. Aramco officials didn’t immediately respond to an email request for comment.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment