Tadawul CEO: Saudi stock exchange will continue to develop its markets for Aramco IPO
The flotation of 5% of the company is expected to generate $100 billion
Saudi stock exchange (Tadawul) CEO Khalid Al Hussan, told CNBC on Wednesday that it is in a good position to deal with the pressures of an IPO for Saudi Aramco.
"I think the Saudi stock exchange will continue to develop its markets to be ready for Aramco and other issues," Al Hussan told CNBC.
This follows widespread rumors that the Aramco IPO had been called off, which Saudi Arabian Minister of Energy, Industry and Mineral Resources and Saudi Aramco Chairman Khalid Al Falih has denied. Al Falih responded to the rumors, saying that Saudi Arabia remains "committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum."
Floating 5% of the company would generated an estimated $100 billion towards diversifying the kingdom's economy, a major concern for Crown Prince Mohammed bin Salman. He believes the company will be valued at around $2 trillion, but outside commenters place the value closer to the $1 trillion mark.
Following rumors that the IPO was cancelled, the kingdom gave Saudi Aramco a 40-year concession to exploit Saudi oil and gas reserves, part of the company's preparations for an IPO, according to Bloomberg.