Friday, 24 August 2018

Shelved Aramco IPO hits at heart of Saudi prince's reforms | Reuters

Shelved Aramco IPO hits at heart of Saudi prince's reforms | Reuters:

Saudi Arabia’s decision to shelve what was billed as the biggest share sale ever is a major blow to the credibility of Crown Prince Mohammed bin Salman but there are other ways to finance reforms to strengthen the economy, bankers and investors say.

The initial public offering (IPO) of 5 percent of state-owned oil giant Saudi Aramco was a centrepiece of the crown prince’s plan to diversify the kingdom’s economy beyond oil by raising $100 billion for investment in other sectors.

The 32-year-old ruler, widely known as MbS, also promised that listing Saudi Aramco on international stock markets would help create a culture of openness in the secretive kingdom and make it more appealing to foreign investors.

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