Aramco share sale curb rules out overseas listing for at least a year

The Saudi government plans to sell 2% of state oil giant Aramco in a domestic li...

DUBAI/RIYADH - The Saudi government plans to sell 2% of state oil giant Aramco in a domestic listing on Dec. 11, three sources familiar with the matter said, but restrictions on future share sales mean an international IPO is ruled out for at least a year.

The Saudi government will face a one-year restriction on selling more Aramco shares following the domestic listing, according to the sources, meaning any overseas IPO is unlikely to be held in 2020. Sunday’s announcement had said Aramco and the selling shareholder would be subject to restrictions on the sale, disposition or issuance of additional shares, but did not provide the lock-up period.

Aramco said the IPO timetable was delayed because it began a process to acquire a 70% stake in petrochemicals maker Saudi Basic Industries Corp.Bankers have told the Saudi government that investors will likely value the company at around $1.5 trillion, below the $2 trillion valuation touted by Prince Mohammed when he first floated the idea of an IPO nearly four years ago.

A $2 trillion valuation would be almost twice that of Microsoft, currently the world’s most valuable listed company and seven times that of Exxon Mobil Corp, the biggest listed oil major by market cap.

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