Saudi Arabia’s state-owned oil behemoth can be increasingly looking to just float locally, as plans to list on an international exchange hang inside the balance, Reuters reported, citing sources close to the matter.
Saudi Aramco had planned to begin trading on the country’s domestic stock market — the Tadawul — in addition to one or more foreign exchanges inside the second half of 2018. London, fresh York in addition to Hong Kong are among the foreign bourses currently competing for the share sale.
However, a Reuters report on Tuesday morning suggested Riyadh can be today banking on being awarded emerging market status inside the influential MSCI benchmark equity index in June, according to its sources. Significantly more money tracks emerging markets which should allow Aramco to attract Western funds, in addition to various other flagship investors by China, Japan in addition to South Korea.
“I could guess This kind of can be about evens in which there will be no international IPO,” said a high-level source familiar with the preparations, according to Reuters. The source added in which the preparations were proving to be a disappointment. CNBC has not been able to independently verify these sources.
Saudi Aramco was not immediately available for comment when contacted by CNBC.