92259
Shelved Aramco IPO Hits Saudi Prince’s Reforms
Shelved Aramco IPO Hits Saudi Prince’s Reforms

Shelved Aramco IPO Hits Saudi Prince’s Reforms

Shelved Aramco IPO Hits Saudi Prince’s Reforms

Saudi Arabia’s decision to shelve what was billed as the biggest share sale ever is a major blow to the credibility of Crown Prince Mohammed bin Salman but there are other ways to finance reforms to strengthen the economy, bankers and investors say.

The initial public offering of 5% of state-owned oil giant Saudi Aramco was a centrepiece of the crown prince’s plan to diversify the kingdom’s economy beyond oil by raising $100 billion for investment in other sectors, Reuters reported.

The 32-year-old ruler, widely known as MbS, also promised that listing Saudi Aramco on international stock markets would help create a culture of openness in the secretive kingdom and make it more appealing to foreign investors.

The decision to shelve the IPO raises doubts about the management of the process as well as the broader reform agenda, sapping the momentum generated by Prince Mohammed’s dramatic 2030 Vision announcement in 2016 that helped propel him to power in the world’s top oil exporter.

“The problem is the more it gets delayed and the more there’s not clarity on why it’s getting delayed and what the issues are, the more it undermines confidence,” said James Dorsey, a senior fellow at Singapore’s S. Rajaratnam School of International Studies.

“He hss been very good at creating expectations but not as good at managing expectations,” said Dorsey.

Industry sources told Reuters this week that both the international and domestic legs of the IPO had been postponed indefinitely.Saudi Energy Minister Khalid al-Falih said the government remained committed to conducting the IPO at an unspecified date in the future.

 

Short URL : https://goo.gl/mDop1K
  1. https://goo.gl/YzzxgR
  • https://goo.gl/F1pHUD
  • https://goo.gl/ih1EVw
  • https://goo.gl/TvRhZb
  • https://goo.gl/uLttFG

You can also read ...

India Co. Says ‘Important’ to  Buy Some Iranian Oil
Mangalore Refinery and Petrochemicals, a subsidiary of India’s...
NIOC Chief: US Talk to Zero Iran Oil Export Is Hot Air
Rhetoric from the United States that it wants to reduce Iran’s...
Iran's Marjan Petrochem Company Exports 1st Methanol Cargo
The first 20,000 ton methanol consignment produced by Marjan...
Crude Prices Rise
Oil prices rose for a fourth day on Wednesday after industry...
NOPEC Threat Prompts Change at OPEC
OPEC has urged its members not to mention oil prices when...
Russian Expert: Collaboration With Oil Majors Could  Help Iran Enhance Energy Output
Iran has proved that it has great potential for investment...
Foreign Firms to Invest in Mazandaran DGs Power Projects
Foreign companies have signed contracts to invest in small...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus