Saudi energy minister denies Aramco IPO will be called off

CAIRO: Saudi Arabia's energy minister denied a Reuters report that state oil giant Aramco's initial public offering will be called off, in a statement issued early on Thursday.

"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, Energy Minister Khalid al-Falih said in a statement released on Saudi Press Agency.

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 said in teh statement.

The government has undertaken a number of major preparatory measures including issuing a new income tax law as it relates to hydrocarbons activities; reissuing a long-term exclusive concession; and appointing a new board of directors, amongst other measures to safeguard its interests and those of the company's future private shareholders, the statement read.

"The company, for its part, has completed its internal program for IPO preparedness. Specifically, it has amended its bylaws; converted to a joint stock company; ensured that its internal segmental financial reporting aligns with potential listing venue requirements; established an investor relations function; and undertaken the first independent certification of its hydrocarbon reserves, all confirming the company's peerless status in the industry," it said.

Reuters reported on Wednesday that four senior industry sources said Saudi Arabia has called off both the domestic and international stock listing of Aramco.

The financial advisors working on the proposed listing have been disbanded, as Saudi Arabia shifts its attention to a proposed acquisition of a “strategic stake” in local petrochemicals maker Saudi Basic Industries Corp, two of the sources said.

“The decision to call off the IPO was taken some time ago, but no-one can disclose this, so statements are gradually going that way - first delay then calling off,” a Saudi source familiar with the IPO plans said.

(With inputs from Saudi Press Agency)