Riyadh – Mubasher: Saudi Aramco has postponed its potential initial public offering (IPO) until after it finishes its acquisition of a majority stake in the Saudi Basic Industries Corporation (SABIC), CEO Amin Nasser told the Financial Times (FT).

Aramco’s possible acquisition of a large stake in SABIC is part of its strategy to diversify its revenues, Nasser added.

Negotiations between Aramco and SABIC are still in early phases, the CEO noted, indicating that the two parties have not come to an agreement regarding the deal’s value.

“We are still doing due diligence, [and] you need to go through antitrust in so many countries. So … all of that process will take some time,” Nasser stated.

On 3 September, Moody’s Investors Services expected delay of Aramco’s domestic and global IPOs would take its toll on the kingdom’s economic diversification plan.

Last month, Reuters reported, citing unnamed sources, that Aramco had called of the IPO, however, Saudi oil minister Khalid Al-Falih denied this rumour saying that the IPO would take place but after the SABIC deal.

“The government remains committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum,” Al-Falih had said.

In July, Nasser had said that the SABIC deal may delay Aramco’s IPO. He did not disclose the length of the delay.