Global funds to snub Aramco after IPO

Sam Kerr

November 28, 2019 01:45 PM

Aramco_local_oil_bike_PA_230x150_Nov18 — EASTERN PROVINCE, SAUDI ARABIA - OCTOBER 12, 2019: A worker rides a bicycle by oil tanks at an oil processing facility of Saudi Aramco, a Saudi Arabian state-owned oil and gas company, at the Abqaiq oil field. On 14 September 2019, two of the major Saudi oil facilities, Abqaiq and Khurais, suffered massive attacks of explosive-laden drones and cruise missiles; the Houthi movement, also known as Ansar Allah, claimed responsibility for the attacks. Stanislav Krasilnikov/TASS | Stanislav Krasilnikov/Tass/PA Images

Saudi Arabia’s listing of its prized asset, oil producer Saudi Aramco, was supposed to lure international investors into the kingdom. On that score, the deal will be a failure as pricing was set so high that only locals were interested. Now it seems global funds will have little reason to buy the shares once they start trading. Sam Kerr reports.

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Topics

Equity IPOs Equity Middle East Saudi Arabia Emerging Markets EMEA Middle East Equity EM Middle East GCC

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Sam Kerr