Aramco IPO MirageWednesday 07 June 2017
An IPO of Saudi Aramco in late 2018 at a valuation of $2 trillion (tn) has been widely trailed in the Press. We believe the Aramco IPO is unlikely to happen in 2018, if at all, for three main reasons: timing, the oil price, and valuation.
An IPO in the second half of 2018 is a challenging deadline. It leaves scant time to restructure the conglomerate’s myriad public interest and commercial holdings and to produce financial accounts to international standards. As a commercial...