Economy

Aramco IPO Prospectus to Be Filed by End of Month

Aramco IPO Prospectus to Be Filed by End of Month

The Saudi Arabia Monetary Authority (SAMA) is examining local banks' exposure to Saudi Aramco ahead of an initial public offering (IPO) of the state-oil giant that will likely see large numbers of Saudi investors seek loans to buy its stock. But he said there was "no proof regarding the attacks came from Yemen".

The state-owned oil enterprise will list its shares on Saudi Arabia's Tadawul exchange, as part of Crown Prince Mohammed bin Salman's economic reform plan. The government wants Aramco's IPO to achieve a $2 trillion valuation, however, the downgrade of its credit rating could put a shadow on these plans.

Saudi Aramco's CEO Amin Nasser has said that oil production capacity will return to normal by the end of November and will not impact the IPO.

"An absence of worldwide resolve to take concrete action may embolden the attackers and indeed put the world's energy security at greater risk", he told the Oil & Money conference in London in rare political comments.

Observers say the attacks have also exposed the vulnerabilities of Saudi oil infrastructure, while the extent of the damage at the plants remains unclear.

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"You heard the minister of foreign affairs and I think he spoke enough about (where) the attacks (are) coming from".

Nasser added that the attacks had no effect on Aramco's revenues because the company continued to supply customers as planned. "It's instigated by Iran for sure, there's no doubt".

Saudi Arabia's gross domestic product (GDP) growth this year is forecast at 0.8 per cent, down from an earlier World Bank estimate of 1.7 per cent in April, pressured by oil production cuts and a worsening global outlook, according to the report. Although Yemen's Houthi militia repeatedly claimed responsibility of the attacks, and warned of further attacks unless Riyadh ended its military campaign in Yemen, Washington and Riyadh have blamed Iran.

The attacks initially halved the kingdom's crude production.