Saudi Aramco will not market IPO in the United States

A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia

Saudi Aramco does not plan to market its domestic initial public offering (IPO) in the United States, two sources familiar with the matter said.

Aramco had said in its IPO prospectus earlier this month that the offering of shares would rely on the 144A rule of the U.S. Securities Act, which allows a non-U.S. issuer to tap the U.S. market.

The sources said Aramco will no longer rely on that rule, meaning it will not market the shares in the United States.

Aramco did not immediately respond to a comment request.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national petroleum and natural gas company based in Dhahran, Saudi Arabia. It is one of the largest companies in the world by revenue, and according to accounts seen by Bloomberg News, the most profitable company in the world.

Saudi officials have backed an official figure of $2 trillion for Saudi Aramco’s value. The company’s financial data were leaked in April 2018, and according to Bloomberg’s analysts the company could be valued at $1.2 trillion, a significantly lower sum.

On 9 April 2019, Aramco has raised $12 billion of bonds. Its first international bond issue has received more than $100 billion in orders from foreign investors which breaks all records for a bond issue by an emerging market entity.

On Wednesday, 12 June 2019, Aramco has reported its net income at $111.1 billion in 2018 compared to $75.9 billion in 2017, this with total revenues at $355.9 billion in 2018. By first half of 2019, Aramco reported a net income of $46.9 billion.

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