Saudi Aramco delays IPO to allow rooms for earnings’ update

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Saudi Aramco delays IPO to allow rooms for earnings’ update

The OPEC (Organization of Petroleum Exporting Nations) kingpin, Saudi Arabia's state-owned oil firm, Aramco had delayed its slated launch of initial public offering in the domestic market, as the world’s largest company by operating profit sought further rooms to update investors about its latest quarterly earnings’ report, at least two sources familiar with the issue told on Thursday, the 17th of October 2019.

As a matter of fact, according to earlier media reports, Aramco, the state-owned oil firm of Saudi, was expected to announce an initial public offering of its 1% to 2% stakes in Saudi Arabia’s local stock market, Tadawul, which would likely to be followed by a possible listing in the international market, however, Saudi Aramco had backed off of a plan to list its stocks in the New York Stock Exchange earlier on Q3, considering the legal setback it could face in US public trading.

Meanwhile, adding that Aramco’s recent decision to delay its public offering in the domestic market had been part of a broad-based plan to show off the oil giant’s resilience against military attacks following a Sept.

14 attack on its Abqaiq oil facilities and Khurais oil plant, which had wiped out nearly half of the oil-dependent economy’s oil output, but surprisingly the energy giant had fixed its production lines within a week of the attack, one of the two sources said late on Thursday (October 17th), “They want to do all what they can to hit the valuation target, so solid results after the attack will give them a stronger position”.