Saudi Aramco eyes Tokyo for two-stage IPO: report

Saudi oil giant Aramco is considering a two-stage initial public offering (IPO) with a domestic debut and a subsequent international listing possibly in Tokyo, the Wall Street Journal reported yesterday. Aramco has said it plans to float around five percent of the state-owned company in 2020 or 2021 in what could potentially be the world’s biggest stock sale.

The oil giant is now considering a plan to raise as much as $50 billion in a domestic listing, the Journal said citing unnamed sources. It added that the world’s biggest energy firm favours Tokyo as a possible venue for the second phase of the proposed plan. If confirmed, that would be a setback for London, New York and Hong Kong, which have all vied for a slice of the much-touted IPO.

Political uncertainty in Britain over its plan to exit the European Union and public protests in Hong Kong had diminished their prospects, the Journal cited Saudi officials and advisors as saying.Aramco did not immediately respond to AFP’s request for comment. The planned IPO forms the cornerstone of a reform programme envisaged by Crown Prince Mohammed bin Salman to wean the Saudi economy off its reliance on oil.