Saudi Aramco delays IPO amid doubts about $2trn valuation

The delay will last at least several weeks as bankers include Saudi Aramco's Q3 results into their pre-IPO assessments

Saudi Aramco, Ipo, Mbs, Mohammed bin salman

Saudi Aramco's initial public offering has once more been delayed due to concerns about its valuation, which Crown Prince Mohammed bin Salman places at $2trn.

Bloomberg reported that the delay would last at least a few weeks, allowing Saudi Aramco's Q3 results to be included into pre-IPO assessments by the banks advising Aramco. An anonymous source close to the matter told Bloomberg that the banks are facing challenges to meet a $2trn valuation.

The share sale was strategically planned to directly pre-empt the Future Investment Initiative, informally known as Davos in the Desert, where Aramco could promote it, to be followed by the IPO in November. 

The company will list a small percentage of the company on the Saudi exchange, with Bloomberg reporting that around 2 percent would be sold, raising $40bn and easily surpassing Alibaba Group Holding's $25bn listing as the world's largest IPO.

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