Saudi Arabia remains committed to Aramco IPO: Al-Falih

Saudi Arabia denied media reports that plans to list shares of state-owned oil producer Saudi Aramco on Tadawul have been scrapped, Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources and chairman of Saudi Aramco, said in a statement on Thursday.

"The Government remains committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum. This timing will depend on multiple factors, including favorable market conditions, and a downstream acquisition which the Company will pursue in the next few months, as directed by its Board of Directors," Al-Falih added.

Several measures have been taken by the Saudi government ahead of the planned floatation to safeguard its interests and those of the company's private shareholders going forward.

A new income tax on hydrocarbons activities was imposed, a long-term exclusive concession was reissued, and a new board of directors was also appointed.

The giant oil producer has completed its internal program to prepare for the IPO, including amending its bylaws, converting to a joint stock company, ensuring that its financial reporting aligns with potential listing venue requirements, and undertaking the first independent certification of its oil and gas reserves.

"This is all positive progress on what is a complex process, preparing the company and the Kingdom for what will ultimately be a global landmark market offering of unprecedented quality and scale,” the statement added.

Saudi Arabia is planning to sell a 5 percent stake in Aramco, as the Kingdom looks to diversify its economy through privatization and fiscal reforms. The listing is expected to be the world’s largest, valued at $100 billion.