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Saudi Arabia says oil giant Aramco’s £1.5tn flotation is still on

11:15 am, 23rd August 2018

State-run Saudi Aramco is considering floating 5% of its shares, possibly in London, Hong Kong or New York, in addition to a listing in Riyadh.

It is all part of Crown Prince Mohammed bin Salman’s plan to open up the Saudi Arabian economy to international investors.

Reuters had earlier reported that financial advisers who had been working on the $2tn (£1.5tn) stock market listing had been disbanded, citing four industry sources.

But Saudi Energy Minister Khalid al-Falih said in a statement the IPO remains on track.

“The government remains committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum,” he said.

“This timing will depend on multiple factors, including favourable market conditions and a downstream acquisition which the company will pursue in the next few months.”

Saudi Aramco, the world’s biggest oil and gas company, made $33.8bn (£26.2bn) in net income in the first six months of 2017.

In June, London’s Financial Conduct Authority relaxed rules for state-owned companies wanting to list on the London Stock Exchange, opening the way for Aramco to float in London.