In response to media reports about the intention to cancel Saudi Aramco's IPO, Saudi Arabia’s Minister of Energy, Industry and Mineral Resources, Khalid Al-Falih, has issued a statement dismissing the reports as incorrect.

“The government remains committed to the IPO of Saudi Aramco, in the appropriate circumstances and at the appropriate time chosen by the government. The timeframe for the offering will depend on several factors, including market conditions for the IPO, as well as a potential acquisition,” Al Falih said.

He also added that the refining and chemicals sector will be carried out by the company under the guidance of its board of directors during the next few months.

“As part of preparations for Saudi Aramco's IPO, the government has taken several important measures including issuing the hydrocarbon tax system, re-issuing an exclusive concession agreement, appointing a new board of directors and other measures to protect its interests and those of potential investors,” a statement on Saudi Press Agency read.

“Saudi Aramco has made several achievements as part of its internal program to prepare for the initial public offering. The main objective of this program is to amend its internal regulations and rules, to become a joint stock company, to adapt its financial statements and internal financial reports to key business sectors to meet the requirements of the potential financial markets. The establishment of an investor relations department, and the completion of the first independent evaluation of hydrocarbon reserves, confirming the company's leading position in the energy sector, the statement added.

Last Update: Wednesday, 20 May 2020 KSA 09:53 - GMT 06:53