Almost two months ago, The FT reported that the Aramco IPO "almost certainly wouldn't happen," and today we get a quasi confirmation from Reuters' sources that the IPO process is officially over as the Saudis disband the advisor group.
Saudi Arabia has called off both the domestic and international stock listing of state oil giant Aramco, according to four industry sources:
“The decision to call off the IPO was taken some time ago, but no-one can disclose this, so statements are gradually going that way - first delay then calling off,” a Saudi source familiar with IPO plans.
WTI Crude reacted modestly lower on the news...
Two years ago, when the Aramco IPO was first floated, bankers on Wall Street declared a week-long fee orgy: after all, the $1+ trillion IPO was going to result in billions in underwriting fees. However, it was not meant to be, and last October the first reports emerged that the IPO would not happen over Saudi concerns over financial transparency, venue of the listing, and how much information investors would demand from Saudi Arabia.
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