Just a week after the coordinated attacks on its oil-producing facilities, Saudi Aramco has revealed that it is still undeterred and will be proceeding with its planned initial public offering (IPO).
According to reports citing sources close to the matter, Crown Prince Mohammed bin Salman and his team of bankers are apparently wasting no time in preparing for the company's planned public debut.
The attack, which cut down Saudi's oil production by more than 5 million barrels per day, has done little to stop the company from pursuing its public listing.
Reports have revealed that Aramco officials are apparently set to hold a number of meetings this week with more than a dozen junior underwriters to lay out plans for what will be the world's largest IPO.
The reported meetings will be taking place on Wednesday and Thursday, consisting mostly of analysts' presentations on the different factors that will be involved when the company goes public.
Senior bank officials from the financial institutions that had been selected by Aramco are reportedly working around the clock to finalize plans for the public debut. The banks are apparently setting a November deadline for themselves, in case Aramco does decide to move ahead of schedule.
Bookrunners, or lead managers and underwriters, reportedly flew to the Middle East over the weekend and promptly met with Aramco officials as early as Monday. Saudi Aramco had reportedly also already approached a number of prominent financial figures, both domestically and internationally, to discuss with them the possibility of being anchor investors for the IPO.
The immediate actions being taken by the company is a clear signal to everyone that not even the attacks on its facilities will hamper its plan of going public.
However, some analysts have pointed out that the recent attacks do have some bearing on the company's plans as it did underline the growing security risk for investors.
One of the factors that are being closely watched by global investors is the company's ability to fully bring back online its oil production after the attacks. Aramco had mentioned that it should be able to return its facilities to full operation within the next two weeks, but that still remains to be seen.
If Aramco manages to keep its promise and return its operations back to full force, investors may be more willing to overlook the security issues. This would essentially make an Aramco investment more attractive. However, if the company fails to do so, it could spell disaster for its planned IPO.
