The Riyadh initial public offering of Saudi Aramco's energy-trading business, which would have been one of this year's biggest share sales, has been postponed. The state-owned oil company has decreased its efforts towards preparing for the deal in the past few months and has not established a new schedule for the listing. Unless market conditions improve, the listing may be delayed until the following year.
- Aramco was aiming to list its business on the Riyadh bourse in late 2022 or early this year, with a potential valuation of over $30 billion. However, sources now indicate that Aramco is finding it challenging to list such a substantial business on the bourse at present. Furthermore, the company plans to delay the IPO to allow for the integration of its primary trading unit with the trading arm of its US refining business, Motiva Enterprises LLC.
Why it matters
In light of global economic growth concerns, Saudi Arabia’s listing market has been rather subdued this year. Data compiled by Bloomberg revealed that only $72 million has been raised through listings in Riyadh this year, compared to nearly $4 billion at this time last year.