Saudi Arabia’s sovereign fund is set to borrow up to $12 billion from international banks after IPO plans for the Saudi Arabian Oil Co., better known as Aramco, were put on hold, the Financial Times reported on August 23, cited by Reuters.
The news agency reported on August 22 that Saudi Arabia had called off its plans for listing the oil giant as the country shifts its attention to a proposed stake in local petrochemicals maker Saudi Basic Industries Corp.
“The government remains committed to the initial public offering of Saudi Aramco, in accordance with the appropriate circumstances and appropriate time chosen by the Government,” Reuters quoted Energy Minister Khalid al-Falih as saying in a statement.
Crown Prince Mohammed bin Salman announced a plan to sell about 5% of Aramco in 2016 via a local and an international listing.
The WSJ quoted al-Falih as saying on August 23 that the government would list Aramco when market conditions are favourable and once the oil giant had completed the multibillion-dollar acquisition of a state-owned chemicals firm.