Saudi Aramco, the state-controlled oil company, has decided to delay the planned initial public offering (IPO) of its energy-trading business in Riyadh. The IPO was expected to be one of the largest share sales this year, but Aramco has significantly slowed down its preparatory work in recent months, citing market uncertainties. According to sources familiar with the matter, the IPO may be postponed until next year unless the market improves. Aramco had earlier planned to list the business in late 2022 or early this year with a potential valuation of over $30 billion.
The decision to postpone the IPO is also attributed to Aramco's desire to complete the integration of its main trading unit with the trading arm of its US refining business, Motiva Enterprises, before proceeding with the offering. The company has been working with banks like Goldman Sachs Group, JPMorgan Chase & Co., and Morgan Stanley to study the potential IPO.
