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Saudi Arabia: Saudi Aramco IPO Delayed for Several Weeks

1 MIN READOct 18, 2019 | 14:41 GMT

What Happened: Saudi Arabian Oil Co. (Saudi Aramco) has delayed its long-anticipated initial public offering by several weeks until either December or January 2020, The Wall Street Journal reported Oct. 17. Riyadh reportedly postponed the IPO to allow banks and investors to analyze the company's third-quarter financial results as it hopes to boost Saudi Aramco's valuation.

Why It Matters: The delay could indicate that Saudi Aramco didn't achieve its targeted valuation of $2 trillion. Banks and other financial institutions have been criticizing Saudi Arabia for not releasing enough data and information to analyze the company's financials and its relationship with the Saudi government.

Background: Saudi Aramco's IPO plans suffered a substantial setback last month after a drone attack against the Abqaiq and Khuras oil processing sites briefly took more than half of Saudi crude production offline.

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