CEO of Saudi Aramco stated that its long-awaited plan to sell will come as real giant oil stocks, but anticipates nothing before at 2021. IPO led by a state-controlled firm is a confirmed goal of Mohammed bin Salman, Saudi Prince who estimated the company at more than $ 2 Trillion.
CEO of Saudi Aramco, Nasser Amin while talking at ADIPEC Forum in Abu Dhabi, Saudi Aramco stated that Khalid al-Falih, Saudi Energy Minister and Crown Prince intended to target the listing in coming three years.
“I think His Excellency, His Royal Highness, and the Minister spoke about the plans for 2021. Eventually, the government will conclude when the market will be good,” he said.
Oil prices rose on Monday after Saudi Arabia announced a cut in supply of half a million barrels a day in December. The general problem, however, is that concerns over oversupply in recent months have led to a sharp drop in oil prices.
Over the last 2 Years, Saudi Arabia has geared up to put up to 5% of its national oil company on the stock market but hesitated to continue in a situation of low prices. Until Monday’s price hike, the price of a barrel of oil had been the highest since 1984.
Although a weak market may not be appropriate for the profile, Nasser said that many analysts had uncared the volume of the fund for the IPO.
“We have a new concession, the council has changed, the reserves are controlled, signed a new tax system with the government and there are many reforms in progress to list Saudi Aramco,” he added.
The national oil giant has recently announced the purchase of a majority stake in SABIC, a chemical and material controlled by Saudi Arabia. Aramco’s plan is to transfer certain sales of crude oil to petrochemicals and branch out further into the downstream market.