The world's biggest oil company Saudi Aramco's initial public offering (IPO) will only take place in Saudi Arabia's stock exchange next year, Tedawul, while any listing in foreign markets may not occur, according to a report by the Wall Street Journal on Monday.
Saudi officials cited escalating legal risks including the governance to structure and financial disclosures against Aramco's offering in foreign exchanges.
"Crown Prince Mohammed bin Salman ... has become resigned to the idea that the legal risks of a U.S. listing could be insurmountable," The Wall Street Journal reported based on Saudi officials and people close to the process.
Bin Salman, who is in the U.S. this week to meet President Donald Trump and American businesses, is not expected to make any announcements about the IPO, according to Saudi officials.
Initially, some foreign stock markets including New York, London, Hong Kong and Tokyo were considered for listing.
However, in contrast to the Wall Street Journal report, CNBC reported Monday that Aramco's IPO could take place in Tedawul as soon as the second half of this year, and any international listing would come later, if at all.
The news organization also said since oil prices recovered and are now higher, compared to two to three years ago, the need for a large IPO is not needed as much.
Saudi Arabia aims to earn $100 billion by offering 5 percent of Aramco to the public, which would put the market capitalization of the company at $2 trillion, according to Saudi Crown Prince Mohammed bin Salman's Vision 2030 plan.
While Saudi Arabia does not publicly reveal its remaining crude oil reserves, Aramco's closeness to the Riyadh government has also raised concerns for investors, experts warn.
(Anadolu Agency)
