Top energy leaders eagerly await Saudi Aramco president and CEO Amin Nasser's welcome address on the second day of CERAWeek, the annual energy industry conference, today, hoping to get details on the world's largest initial public offering (IPO) estimated at $100 billion.
In January, Nasser confirmed at the World Economic Forum in Switzerland that Aramco was awaiting clearance from the Saudi government to launch its IPO in the second half of the year.
"In terms of readiness, we are ready. As we always said, the company by the second half of 2018 will be ready," Nasser said.
Nearly 5 percent stake in Aramco, which is currently wholly owned by the government, is expected to be sold, valuing the firm as high as $2 trillion.
The pertinent question, however, has been on its listing. Saudi Stock Exchange (Tadawul) along with another international stock exchange will be the choice. But Nasser has clearly stated earlier that the decision lies with its shareholder.
Several international bourses are vying for the IPO, including New York, London, Hong Kong, Tokyo, and Toronto. In February, UK's securities regulator the Financial Conduct Authority (FCA) said it was open to "sensible adjustments" to allow Aramco to list on the London Stock Exchange.
Nasser will talk at 8:50 am CT (5:50 pm Saudi and 6:50 pm UAE time) Tuesday, while U.S. Secretary of Energy Rick Perry will speak on Wednesday at CERAWeek being held in Houston, Texas.
Some of the biggest names in the industry, including UAE energy minister and OPEC president Suhail Al Mazroeui, Saudi energy minister Khalid Al-Falih, and OPEC secretary general Mohammad Barkindo, will gather at CERAWeek to discuss key topics.
Speaking at the CERAWeek on Monday, the International Energy Agency (IEA) Executive Director Fatih Birol said he expects US shale oil output to continue to rise, regardless of OPEC policies.
In a report released earlier, the IEA said in a new report that oil demand would keep expanding over the next five years, with the United States fulfilling most of the world's growing appetite.
It expects the US to pump 17 million barrels a day of crude oil, condensates and natural gas liquids, up from 13.2 million barrels a day in 2017. By comparison, OPEC will increase its capacity by just 750,000 barrels a day through 2023, the agency added.
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