Aramco focusing on Sabic acquisition; putting IPO on hold

SINGAPORE (Aug 23): Saudi Arabian Oil Co is focusing on buying a strategic stake in chemical giant Saudi Basic Industries Corp, putting work on its potential initial public offering on hold, according to people familiar with the matter.

While the move will further delay the IPO, it does not mean the planned share sale is formally canceled, the people said, asking not to be identified because the matter is private. Aramco, as the company is known, wrote to some but not all of its advisers on the IPO and asked them to suspend work for now, one of the people said.

The kingdom’s energy minister, Khalid al-Falih, said in an emailed statement Thursday that the government is committed to the IPO “at a time of its own choosing when conditions are optimum". The timing depends on multiple factors, including favorable market conditions and a downstream acquisition that the company will pursue in the next few months, he said.

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