London (Bloomberg): Saudi Aramco is starting early preparations for an international listing, just months after the oil giant turned its record initial public offering into a domestic affair and sidelined global banks.
The world’s largest publicly traded company is in discussions with Wall Street banks to draw up scenarios for a second listing overseas. Aramco wants to be ready to move ahead if Crown Prince Mohammed bin Salman, gives the go-ahead to proceed with the plans.
The oil producer is currently focusing on Asian exchanges as potential listing venues, though no final decisions have been made. Some banks that worked on Aramco’s $29.4 billion IPO last year are involved in the discussions.
The company hasn’t set a timetable for the potential deal, the people said. An overseas listing is currently seen as unlikely to take place this year given market conditions and a weak outlook for commodity prices.
Second time lucky
Aramco is considering a secondary listing even after its December offering fell short of Prince Mohammed’s lofty ambitions. The company sold less than 2 per cent of its capital and opted for a local listing after international investors balked at his $2 trillion valuation target. Global equity indexes global markets are also feeling the weight of the coronavirus outbreak amid concerns that the epidemic is spreading outside of China and hurting corporate earnings.
Shares of Aramco are down about 5 per cent this year after the company’s valuation briefly touched the $2 trillion mark in December. Oil, which drives its revenue, has had one of the worst annual starts in years and may come under further pressure as the virus spreads.