Aramco to begin preparations for IPO after Sabic deal is closed
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Saudi Aramco will begin preparations for its initial public offering (IPO) after completing the acquisition of Sabic, Khalid al-Falih, Energy Minister and chairman of Aramco said on Wednesday. Speaking at the first Financial Sector Conference in Riyadh, Falih said, "The IPO will come as soon as we are ready. We will start working on the IPO once we close the Sabic acquisition and the balance sheets are consolidated. Aramco is also planning to access the bond and debt market, locally and internationally, Falih said. The $12 billion inaugural bond issue, launched this month, was "just the beginning and not the end," he said. Last month, Aramco signed a share purchase agreement to acquire a 70% stake in Sabic from the Public Investment Fund, Saudi Arabia's sovereign wealth fund, for $69.1 billion. In a prospectus issued on 1 April to coincide with the bond issue, Aramco says it expects the Sabic deal to close in 2020. The company previously said it expects the IPO to take place in 2021.