Riyadh to seek $11bn in bank loans after Saudi Aramco IPO stalls | Financial Times:
Saudi Arabia’s sovereign wealth fund is primed to choose international banks to lend it $11bn, filling the hole left by the delayed listing of state energy group Saudi Aramco and providing financing for crown prince Mohammed bin Salman’s ambitious economic reforms.
The loans will be the first made to the Public Investment Fund, the vehicle used to drive the young prince’s vision for an economy less dependent on oil, which has placed bold bets on electric car maker Tesla, ride-hailing app Uber and space travel company Virgin Galactic.
The loans are particularly important for the fund after plans to list Saudi Aramco, from which it was due to receive proceeds, were postponed indefinitely. Riyadh’s focus has shifted away from the blockbuster IPO, which had been expected to raise in the region of $100bn, in favour of other means of financing for the PIF.
Thursday, 23 August 2018
Saudi Aramco IPO delay not likely to impact on economy, says economist | ZAWYA MENA Edition
Saudi Aramco IPO delay not likely to impact on economy, says economist | ZAWYA MENA Edition:
Further delays to the process of listing Saudi Aramco either domestically or on global markets is unlikely to have an impact on the country's markets or its wider economy, according to Capital Economics.
The London-based firm said in a note issued on Thursday that "We don’t think another delay would have a significant direct impact on Saudi Arabia’s economy or financial markets in the near-term.
The firm pointed out in its note that the timeline for the Kingdom's IPO "has already been pushed back quite far". A listing of the company at least on the Saudi stock exchange, Tadawul, had been due to take place this year.
Further delays to the process of listing Saudi Aramco either domestically or on global markets is unlikely to have an impact on the country's markets or its wider economy, according to Capital Economics.
The London-based firm said in a note issued on Thursday that "We don’t think another delay would have a significant direct impact on Saudi Arabia’s economy or financial markets in the near-term.
The firm pointed out in its note that the timeline for the Kingdom's IPO "has already been pushed back quite far". A listing of the company at least on the Saudi stock exchange, Tadawul, had been due to take place this year.
Saudi Arabia insists Aramco IPO remains on course | Financial Times
Saudi Arabia insists Aramco IPO remains on course | Financial Times:
Saudi Arabia has insisted that it remains committed to an initial public offering of national oil company Saudi Aramco, but said the listing would go ahead “at a time of its own choosing, when conditions are optimum”.
The government statement follows months of signs that the kingdom was unwilling or unable to forge ahead with a planned flotation — which could be the largest ever — and a Reuters report saying both the proposed domestic and international stock listings had been called off, with IPO advisers disbanded.
Khalid Al Falih, the Saudi energy minister, issued the statement early on Thursday dismissing “speculation surrounding the cancellation of the IPO as not true”.
Saudi Arabia has insisted that it remains committed to an initial public offering of national oil company Saudi Aramco, but said the listing would go ahead “at a time of its own choosing, when conditions are optimum”.
The government statement follows months of signs that the kingdom was unwilling or unable to forge ahead with a planned flotation — which could be the largest ever — and a Reuters report saying both the proposed domestic and international stock listings had been called off, with IPO advisers disbanded.
Khalid Al Falih, the Saudi energy minister, issued the statement early on Thursday dismissing “speculation surrounding the cancellation of the IPO as not true”.
Oil Trades Near $68 on Bigger-Than-Forecast U.S. Inventory Draw - Bloomberg
Oil Trades Near $68 on Bigger-Than-Forecast U.S. Inventory Draw - Bloomberg:
Oil in New York traded near $68 a barrel following a five-day winning streak after U.S. crude inventories declined more than forecast.
Front-month futures were little changed after posting their longest consecutive run of gains since April. Nationwide stockpiles declined 5.84 million barrels last week, more than double what was expected in a Bloomberg survey of analysts. The dollar, which had helped buoy oil prices after a five-day slide, climbed 0.3 percent on Thursday.
Oil in New York traded near $68 a barrel following a five-day winning streak after U.S. crude inventories declined more than forecast.
Front-month futures were little changed after posting their longest consecutive run of gains since April. Nationwide stockpiles declined 5.84 million barrels last week, more than double what was expected in a Bloomberg survey of analysts. The dollar, which had helped buoy oil prices after a five-day slide, climbed 0.3 percent on Thursday.
Saudi Aramco IPO Concept Was Far Too Premature - Bloomberg
Saudi Aramco IPO Concept Was Far Too Premature - Bloomberg:
I’ve long thought that Crown Prince Mohammed bin Salman’s life overlaps in curious but important ways with one Elon Musk, CEO of Tesla Inc. And now, MBS even has his own take on Musk’s “funding secured” meme.
The long-awaited initial public offering of Saudi Arabian Oil Co., or Saudi Aramco, has been put on hold, according to my colleagues in Bloomberg News. Given it is already two-and-a-half years since the sale was first mooted, “on hold” sounds a lot like “how about never?” For their part, the Saudi authorities, citing preparations made to date, insisted late Wednesday evening that the IPO hadn’t been cancelled — as Reuters had earlier reported — but that it would go ahead at a time of the government’s own choosing.
In any case, it’s fair to say that MBS’s confident proclamations about the mother of all IPOs were a tad premature and that $2 trillion valuation he spoke of was decidedly not secured (still, at least no one could mistake $2,000,000,000,000 for a joke about weed).
I’ve long thought that Crown Prince Mohammed bin Salman’s life overlaps in curious but important ways with one Elon Musk, CEO of Tesla Inc. And now, MBS even has his own take on Musk’s “funding secured” meme.
The long-awaited initial public offering of Saudi Arabian Oil Co., or Saudi Aramco, has been put on hold, according to my colleagues in Bloomberg News. Given it is already two-and-a-half years since the sale was first mooted, “on hold” sounds a lot like “how about never?” For their part, the Saudi authorities, citing preparations made to date, insisted late Wednesday evening that the IPO hadn’t been cancelled — as Reuters had earlier reported — but that it would go ahead at a time of the government’s own choosing.
In any case, it’s fair to say that MBS’s confident proclamations about the mother of all IPOs were a tad premature and that $2 trillion valuation he spoke of was decidedly not secured (still, at least no one could mistake $2,000,000,000,000 for a joke about weed).
Oil slips as trade dispute outweighs U.S. stock decline | Reuters
Oil slips as trade dispute outweighs U.S. stock decline | Reuters:
Oil prices slipped on Thursday as an escalating trade dispute between the United States and China outweighed the bullish impact of a decline in U.S. commercial crude inventories.
Benchmark Brent crude oil LCOc1 was down 30 cents a barrel at $74.48 by 0825 GMT. U.S. light crude CLc1 was 10 cents lower at $67.76.
The trade dispute between the United States and China deepened on Thursday with the imposition of 25 percent tariffs on $16 billion worth of each other’s goods.
Oil prices slipped on Thursday as an escalating trade dispute between the United States and China outweighed the bullish impact of a decline in U.S. commercial crude inventories.
Benchmark Brent crude oil LCOc1 was down 30 cents a barrel at $74.48 by 0825 GMT. U.S. light crude CLc1 was 10 cents lower at $67.76.
The trade dispute between the United States and China deepened on Thursday with the imposition of 25 percent tariffs on $16 billion worth of each other’s goods.
Saudi energy minister denies Aramco IPO will be called off | Reuters
Saudi energy minister denies Aramco IPO will be called off | Reuters:
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.
Reuters reported on Wednesday that four senior industry sources said Saudi Arabia has called off both the domestic and international stock listing of Aramco.
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.
Reuters reported on Wednesday that four senior industry sources said Saudi Arabia has called off both the domestic and international stock listing of Aramco.
Biggest public listing in history put on hold over valuation fears | Business | The Guardian
Biggest public listing in history put on hold over valuation fears | Business | The Guardian:
A partial float of the Saudi oil giant Aramco – the biggest public listing in history – has been “indefinitely postponed” because of fears that its valuation would be much less than expected, according to senior regional sources.
The decision was made earlier in the summer but has been kept under wraps by officials who were worried that shelving what was intended to be the centrepiece of Saudi Arabia’s economic transformation plan may dent investor confidence in the Kingdom, two financiers with knowledge of deliberations revealed.
The development, first reported by Reuters, is a blow to the stock markets in New York and London, which had vied to host the listing.
A partial float of the Saudi oil giant Aramco – the biggest public listing in history – has been “indefinitely postponed” because of fears that its valuation would be much less than expected, according to senior regional sources.
The decision was made earlier in the summer but has been kept under wraps by officials who were worried that shelving what was intended to be the centrepiece of Saudi Arabia’s economic transformation plan may dent investor confidence in the Kingdom, two financiers with knowledge of deliberations revealed.
The development, first reported by Reuters, is a blow to the stock markets in New York and London, which had vied to host the listing.
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