Saudi Aramco IPO: New Year, New Promise Or More Headaches?

Aramco continues preparations towards an IPO. But relatively minor ones. The key disclosures needed for the favored location of New York within the stipulated end-2018 timeframe are nowhere to be seen.

With Aramco IPO planning ending 2017 on a muted note, the state energy giant has started this year on a positive footing.

In a key move towards achieving the 5% equity share listing – officially planned for the second half of this year – Riyadh on 1 January announced it was changing Aramco’s status from a limited liability company to a joint-stock company.

The move will enable it to issue shares and be regulated like other companies. The change will also affect wholly-owned subsidiaries, such as some domestic refineries.

Riyadh also announced that Aramco will now have a board of 11 members, with six nominated by the state. Aramco’s board currently comprises nine members: six senior Saudi officials and three independent. (CONTINUED - 1069 WORDS)