Saudi Aramco’s initial public offering (IPO) will take place by 2021, Crown Prince Mohammed bin Salman has said.
“I believe late 2020, early 2021,” he said during an interivew with Bloomberg. “The investor will decide the price on the day. I believe it will be above $2 trillion. Because it will be huge.”
The IPO was first announced in 2016 as a part of bin Salman’s Vision 2030 plan to revamp the Saudi economy, and was originally planned to take place during the second half of 2018.
However, the sale was unexpectedly put on hold in August, delaying what was expected to be the biggest IPO in history.
Following the announcement, Saudi officials rushed to calm fears that the IPO would be cancelled. “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 in August.
Bin Salman echoed al-Falih’s comments during the interview, which took place at the royal palace in Riyadh.”Everyone heard about the rumors of Saudi Arabia canceling the IPO of Aramco, delaying that, and that this is delaying Vision 2030,” he said. “This is not right.”
Aramco is currently looking to acquire a controlling share in the country’s largest petrochemical company Sabic, potentially costing Aramco $70 billion.